Texas 2009 - 81st Regular

Texas House Bill HB2942 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Dunnam, Crownover, Coleman, H.B. No. 2942
2	2	Turner of Harris, Gattis, et al.
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to accountability and transparency in government
8	8	operations, including disclosure, oversight, and enforcement
9	9	measures; providing penalties.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	ARTICLE 1. SHORT TITLE; FINDINGS; PURPOSE
12	12	SECTION 1.01. This Act may be cited as the "Texas Government
13	13	Accountability and Transparency Act of 2009."
14	14	SECTION 1.02. The legislature finds that the public's
15	15	confidence in its government is highest when there is adequate
16	16	oversight of government spending and performance by an independent
17	17	agency that answers to the people's elected representatives.
18	18	SECTION 1.03. The purpose of Article 2 of this Act is to
19	19	ensure that the State Auditor and the State Accountability Office
20	20	are able to provide the highest level of oversight of government
21	21	spending and performance to ensure the greatest possible economy
22	22	and efficiency in government.
23	23	ARTICLE 2. STATE AUDITOR AND STATE ACCOUNTABILITY OFFICE
24	24	SECTION 2.01. The heading to Chapter 321, Government Code,
25	25	is amended to read as follows:
26	26	CHAPTER 321. STATE ACCOUNTABILITY OFFICE AND STATE AUDITOR
27	27	SECTION 2.02. Chapter 321, Government Code, is amended by
28	28	designating Sections 321.001 through 321.012 as Subchapter A and
29	29	adding a heading for Subchapter A to read as follows:
30	30	SUBCHAPTER A. GENERAL PROVISIONS
31	31	SECTION 2.03. Section 321.001, Government Code, is amended
32	32	by amending Subdivisions (1), (3), and (4) and adding Subdivisions
33	33	(4-a) and (4-b) to read as follows:
34	34	(1) "Audit plan" means the outline of the office's work
35	35	[approved by the committee] for [the State Auditor's Office in] a
36	36	year for the performance of audits and related services, including
37	37	technical assistance, data analysis, consulting and oversight
38	38	functions, investigations, and the preparation of audit reports and
39	39	other types of communications.
40	40	(3) "Board" ["Committee"] means the legislative audit
41	41	board [committee].
42	42	(4) "Department" includes every state department,
43	43	agency, board, bureau, institution, or commission. The term
44	44	includes an institution of higher education as defined by Section
45	45	61.003, Education Code.
46	46	(4-a) "Office" means the State Accountability Office.
47	47	(4-b) "Recovery Act" means the American Recovery and
48	48	Reinvestment Act of 2009 (Pub. L. No. 111-5) and includes any
49	49	subsequent federal economic stimulus legislation.
50	50	SECTION 2.04. Subchapter A, Chapter 321, Government Code,
51	51	as added by this Act, is amended by adding Sections 321.0011,
52	52	321.0014, and 321.0015 to read as follows:
53	53	Sec. 321.0011. STATE ACCOUNTABILITY OFFICE. The State
54	54	Accountability Office is an independent agency of the legislative
55	55	branch of state government.
56	56	Sec. 321.0014. APPLICABILITY TO CERTAIN ENTITIES. This
57	57	chapter applies to the following entities in the same manner as if
58	58	each entity were a department:
59	59	(1) an independent organization certified by the
60	60	Public Utility Commission of Texas under Section 39.151, Utilities
61	61	Code;
62	62	(2) a regional mobility authority;
63	63	(3) the Texas Economic Development Corporation;
64	64	(4) a nonprofit organization that is established by a
65	65	state officer or department and that solicits gifts, grants, and
66	66	other donations for the Texas Enterprise Fund under Section
67	67	481.078;
68	68	(5) a nonprofit organization that is established by a
69	69	state officer or department and that solicits gifts, grants, and
70	70	other donations for any other purpose; and
71	71	(6) any public or private person or entity receiving
72	72	funds through a governmental entity in this state that were made
73	73	available by or provided under the Recovery Act.
74	74	Sec. 321.0015. REFERENCES IN LAW. (a) A reference in this
75	75	chapter or other law to the state auditor's office means the State
76	76	Accountability Office.
77	77	(b) A reference in this chapter or other law to the
78	78	legislative audit committee means the legislative audit board.
79	79	SECTION 2.05. Section 321.002, Government Code, is amended
80	80	to read as follows:
81	81	Sec. 321.002. LEGISLATIVE AUDIT BOARD [COMMITTEE].
82	82	(a) The legislative audit board [committee] consists of:
83	83	(1) the lieutenant governor;
84	84	(2) the speaker of the house of representatives;
85	85	(3) the chair [chairman] of the senate finance
86	86	committee;
87	87	(4) four other members [one member] of the senate
88	88	appointed by the lieutenant governor;
89	89	(5) the chair [chairman] of the house appropriations
90	90	committee; [and]
91	91	(6) the chair [chairman] of the house ways and means
92	92	committee; and
93	93	(7) three other members of the house appointed by the
94	94	speaker.
95	95	(b) In the absence of the chair [chairman] of a house or
96	96	senate committee, the vice chair [vice-chairman] of the respective
97	97	committee shall act.
98	98	(c) Members of the board [committee] serve without
99	99	compensation but are entitled to actual and necessary expenses
100	100	incurred in performing official duties.
101	101	(d) The board [committee] shall employ necessary clerical
102	102	assistants as allowed by legislative appropriation.
103	103	(e) The lieutenant governor and the speaker are joint chairs
104	104	of the board [committee]. [The committee shall elect one member to
105	105	serve as secretary.]
106	106	SECTION 2.06. Subchapter A, Chapter 321, Government Code,
107	107	as added by this Act, is amended by adding Section 321.003 to read
108	108	as follows:
109	109	Sec. 321.003. SUNSET PROVISION. The office and the board
110	110	are subject to review under Chapter 325 (Texas Sunset Act) but are
111	111	not abolished under that chapter. The office and board shall be
112	112	reviewed during the periods in which state agencies scheduled to be
113	113	abolished in 2013.
114	114	SECTION 2.07. Section 321.004, Government Code, is amended
115	115	to read as follows:
116	116	Sec. 321.004. MEETINGS RELATED TO RECOVERY ACT [PROCEDURE
117	117	FOR TIE VOTE]. Beginning July 1, 2009, the board shall meet at
118	118	least once each month in Austin to take testimony and receive
119	119	evidence related to funds received by the state from the federal
120	120	government for economic stabilization, including Recovery Act
121	121	funds. This section expires January 1, 2011 [(a) If the full
122	122	committee is present and is not able to resolve a tie vote within a
123	123	reasonable time on a matter this chapter requires the committee to
124	124	decide, the committee shall select a member of the house or senate
125	125	to meet with the committee and to cast the tie-breaking vote.
126	126	[(b) The seventh member's duty to the committee ends when
127	127	the member casts the tie-breaking vote and the matter is resolved].
128	128	SECTION 2.08. Section 321.005, Government Code, is amended
129	129	to read as follows:
130	130	Sec. 321.005. [APPOINTMENT OF] STATE AUDITOR; APPOINTMENT.
131	131	(a) The State Auditor is the office's chief executive and
132	132	administrative officer. The State Auditor [committee] shall:
133	133	(1) administer and enforce this chapter;
134	134	(2) [appoint a State Auditor to] investigate all
135	135	custodians of state funds, disbursing agents, and department
136	136	personnel;
137	137	(3) investigate fraud or abuse in all departments,
138	138	including misuse of funds, conflicts of interest, contract abuses,
139	139	and other violations of law;
140	140	(4) monitor the compliance of all departments with the
141	141	applicable laws relating to the powers, duties, and functions of
142	142	the departments;
143	143	(5) refer criminal matters as appropriate to the
144	144	Travis County district attorney or the prosecuting attorney of the
145	145	county in which an offense is alleged to have occurred;
146	146	(6) refer civil matters, as appropriate, to the
147	147	attorney general, the Travis County district attorney, or the
148	148	district or county attorney, as applicable, for the county in which
149	149	a civil action regarding the matter would be brought; and
150	150	(7) perform all other duties and exercise all other
151	151	powers granted to the office or the State Auditor by this chapter or
152	152	any other law.
153	153	(b) The board [committee] shall appoint the State Auditor.
154	154	The joint chairs of the board shall execute a written declaration of
155	155	the person appointed by the board as State Auditor and file the
156	156	declaration with the secretary of state.
157	157	(c) The State Auditor serves at the will of the board
158	158	[committee]. The State Auditor is ineligible to be a candidate for
159	159	a public elective office in this state unless the State Auditor has
160	160	resigned and the board has accepted the resignation.
161	161	(d) The board [committee] shall fill any vacancy in the
162	162	office of State Auditor.
163	163	(e) A majority vote of the board [committee] members is
164	164	sufficient to exercise any action authorized by this section.
165	165	SECTION 2.09. Section 321.008(b), Government Code, is
166	166	amended to read as follows:
167	167	(b) The State Auditor must file the oath with the secretary
168	168	of state not later than the 10th day after the date on which the
169	169	board [committee] appointed the State Auditor, or the board
170	170	[committee] or a majority of the board [committee] members shall
171	171	appoint another qualified person as State Auditor.
172	172	SECTION 2.10. Section 321.023, Government Code, is
173	173	transferred to Subchapter A, Chapter 321, Government Code, as added
174	174	by this Act, redesignated as Section 321.009, Government Code, and
175	175	amended to read as follows:
176	176	Sec. 321.009 [321.023]. SEAL. The [state auditor shall
177	177	obtain a] seal of the office is [with "State Auditor, State of
178	178	Texas" engraved around the margin and] a five-pointed star in the
179	179	center with the words "State Accountability Office, State of Texas"
180	180	engraved around the margin. The seal shall [to] be used to
181	181	authenticate official documents issued by or on the order of the
182	182	state auditor.
183	183	SECTION 2.11. Section 321.010(a), Government Code, is
184	184	amended to read as follows:
185	185	(a) The State Auditor shall [may] appoint a first assistant
186	186	state auditor with the approval of the board.
187	187	SECTION 2.12. Subchapter A, Chapter 321, Government Code,
188	188	as added by this Act, is amended by adding Sections 321.0101 and
189	189	321.0102 to read as follows:
190	190	Sec. 321.0101. COUNSELOR; ADVISORY OPINIONS. (a) The
191	191	State Auditor shall appoint a counselor.
192	192	(b) The counselor must be an attorney licensed to practice
193	193	law in this state.
194	194	(c) The counselor may issue advisory opinions under
195	195	procedures approved by the State Auditor relating to the
196	196	appropriate use of and authority to spend state funds.
197	197	Sec. 321.0102. CHIEF CLERK. The State Auditor may appoint a
198	198	chief clerk to receive, file, and carefully preserve all documents
199	199	and records provided to the State Auditor and the office and to
200	200	serve as secretary to the board.
201	201	SECTION 2.13. Sections 321.011(a), (b), and (c), Government
202	202	Code, are amended to read as follows:
203	203	(a) Subject to the General Appropriations Act, and as
204	204	necessary to carry out the powers and duties of the State Auditor
205	205	and the office under this chapter and other laws granting
206	206	jurisdiction or applicable to the State Auditor or the office, the
207	207	[The] State Auditor may:
208	208	(1) appoint [may employ a professional staff,
209	209	including] assistant state auditors and special agents; and
210	210	(2) employ other [stenographic and clerical]
211	211	personnel.
212	212	(b) The State Auditor shall establish the qualifications
213	213	necessary for appointment or employment, including qualifications
214	214	regarding necessary legal knowledge, law enforcement experience,
215	215	honesty, integrity, education, training, and executive ability. A
216	216	person appointed or employed must have the experience necessary to
217	217	qualify the person for the position. The State Auditor may conduct
218	218	professional examinations to determine the qualifications of a
219	219	person seeking appointment or employment [prospective staff
220	220	members].
221	221	(c) The State Auditor may discharge any [assistant auditors
222	222	or stenographic or clerical] personnel at any time for any reason
223	223	satisfactory to the State Auditor and without a hearing.
224	224	SECTION 2.14. Subchapter A, Chapter 321, Government Code,
225	225	is amended by adding Sections 321.0111, 321.0112, and 321.0113 to
226	226	read as follows:
227	227	Sec. 321.0111. SPECIAL AGENTS. (a) The State Auditor may
228	228	employ and commission special agents to assist the office in
229	229	carrying out the duties of the office relating to detection,
230	230	investigation, and prevention of fraud, waste, and abuse.
231	231	(b) A special agent employed by the office is not:
232	232	(1) a peace officer but has the powers of search and
233	233	seizure, as to felony offenses only, under the laws of this state;
234	234	or
235	235	(2) entitled to supplemental benefits from the law
236	236	enforcement and custodial officer supplemental retirement fund
237	237	unless the officer transfers from a position, without a break in
238	238	service, that qualifies for supplemental retirement benefits from
239	239	the fund.
240	240	(c) The State Auditor may not commission more than 20
241	241	special agents at any time.
242	242	Sec. 321.0112. EXPERTS. Subject to the availability of
243	243	funds, the State Auditor may contract with certified public
244	244	accountants, qualified management consultants, or other
245	245	professional experts as necessary to independently perform the
246	246	functions of the office under this chapter or other law.
247	247	Sec. 321.0113. PERSONNEL; POLITICAL INFLUENCE. (a) The
248	248	State Auditor and office personnel are to be free from partisan
249	249	politics, and the State Auditor is free to select the most efficient
250	250	personnel available for each position in the office so that the
251	251	State Auditor may render to the legislature the service the
252	252	legislature has a right to expect.
253	253	(b) It is against public policy and a criminal offense for a
254	254	member of the legislature, an officer or employee of the state, or
255	255	an officer or employee of a state department to recommend or suggest
256	256	that the State Auditor appoint a person to a position in the office.
257	257	An offense under this section is a Class A misdemeanor.
258	258	SECTION 2.15. Sections 321.012(a) and (c), Government Code,
259	259	are amended to read as follows:
260	260	(a) The board [committee] directs and controls the
261	261	expenditure of any money appropriated to the office [of the State
262	262	Auditor] and must approve the State Auditor's appropriation
263	263	requests [and audit plan].
264	264	(c) The salaries of the assistant auditors and other
265	265	[stenographic and clerical] personnel may not exceed the amounts
266	266	paid by other departments for similar services without the approval
267	267	of the board.
268	268	SECTION 2.16. Subchapter A, Chapter 321, Government Code,
269	269	as added by this Act, is amended by adding Sections 321.0121 through
270	270	321.0124 to read as follows:
271	271	Sec. 321.0121. PUBLIC INTEREST INFORMATION. (a) The
272	272	office shall prepare information of public interest describing:
273	273	(1) the functions of the office, including the
274	274	functions of the State Auditor;
275	275	(2) the matters or issues that may be subject to
276	276	audits, investigations, and other functions performed by the
277	277	office; and
278	278	(3) the manner in which a person may report an
279	279	allegation of fraud or abuse to the office.
280	280	(b) The office shall make the information described by
281	281	Subsection (a) available to state officers and employees and to the
282	282	public.
283	283	Sec. 321.0122. REQUIRED CONTRACT DISCLOSURE STATEMENT. (a)
284	284	The office shall develop a standard contract provision requiring a
285	285	contractor to disclose to the office the amount of a payment made
286	286	under the contract to any subcontractor, consultant, or person
287	287	required to register as a lobbyist under Chapter 305 or the Lobbying
288	288	Disclosure Act of 1995 (2 U.S.C. Section 1601 et seq.).
289	289	(b) A department shall include the provision in any contract
290	290	entered into by the department.
291	291	Sec. 321.0123. CONTRACT REPORTING REQUIREMENTS. A
292	292	department that is required under other law to report information
293	293	relating to a contract entered into by the department to the
294	294	Legislative Budget Board shall also report the information to the
295	295	office.
296	296	Sec. 321.0124. POSTING OF CONTRACT INFORMATION ON INTERNET.
297	297	(a) The office shall post any information received by the office
298	298	that relates to a contract entered into by a department and that is
299	299	not confidential by law on an Internet site maintained by or for the
300	300	office. The office shall post the information in a timely manner
301	301	after receipt of the information.
302	302	(b) The Internet site must be accessible to the public.
303	303	SECTION 2.17. Chapter 321, Government Code, is amended by
304	304	designating Sections 321.013 through 321.022 as Subchapter B and
305	305	adding a heading for Subchapter B to read as follows:
306	306	SUBCHAPTER B. AUDITS AND INVESTIGATIONS
307	307	SECTION 2.18. The heading for Section 321.013, Government
308	308	Code, is amended to read as follows:
309	309	Sec. 321.013. ADDITIONAL POWERS AND DUTIES OF STATE
310	310	AUDITOR.
311	311	SECTION 2.19. Sections 321.013(a), (c), and (f), Government
312	312	Code, are amended to read as follows:
313	313	(a) The State Auditor shall conduct audits of all
314	314	departments, including institutions of higher education, as
315	315	specified in the audit plan. The [At the direction of the
316	316	committee, the] State Auditor may [shall] conduct an audit or
317	317	investigation of any entity receiving funds from the state.
318	318	(c) The State Auditor shall prepare an [recommend the] audit
319	319	plan for the state for each year [to the committee]. In devising
320	320	the plan, the State Auditor shall consider recommendations
321	321	concerning coordination of agency functions made jointly by
322	322	representatives of the Legislative Budget Board, Sunset Advisory
323	323	Commission, and the office [State Auditor's Office]. The State
324	324	Auditor shall also consider the extent to which a department has
325	325	received a significant increase in appropriations, including a
326	326	significant increase in federal or other money passed through to
327	327	the department, and shall review procurement activities for
328	328	compliance with Section 2161.123. The plan shall provide for
329	329	auditing of federal programs at least as often as required under
330	330	federal law and shall ensure that audit requirements of all bond
331	331	covenants and other credit or financial agreements are satisfied.
332	332	The board [committee] shall review [and approve] the plan.
333	333	(f) The State Auditor may conduct financial audits,
334	334	compliance audits [and investigations, and, with specific
335	335	authority from the committee], economy and efficiency audits,
336	336	effectiveness audits, and special audits as defined by this chapter
337	337	and specified in the audit plan. The State Auditor shall conduct or
338	338	direct investigations as necessary.
339	339	SECTION 2.20. Section 321.016, Government Code, is amended
340	340	to read as follows:
341	341	Sec. 321.016. IMPROPER PRACTICES AND ILLEGAL TRANSACTIONS.
342	342	(a) If in the course of an audit the State Auditor finds evidence
343	343	of improper practices of financial administration, inadequate
344	344	fiscal records, uneconomical use of resources, or ineffective
345	345	program performance, the State Auditor, after consulting with the
346	346	head of the agency, shall immediately report the evidence to the
347	347	governor, the board [committee], the chairs of the committees of
348	348	each house with oversight responsibility for the agency, and the
349	349	administrative head and the chair [chairman] of the governing body
350	350	of the affected department.
351	351	(b) If in the course of an audit the State Auditor finds
352	352	evidence of an illegal transaction, the State Auditor, after
353	353	consulting with the head of the agency, shall immediately report
354	354	the transaction to the governor, the board [committee], the chairs
355	355	of the committees of each house with oversight responsibility for
356	356	the agency, the Travis County district attorney or the prosecuting
357	357	attorney of the county in which the offense is alleged to have
358	358	occurred, and any other [the] appropriate legal authority.
359	359	(c) Immediately after the board [committee] receives a
360	360	report from the State Auditor alleging improper practices of
361	361	financial administration, uneconomical use of resources, or
362	362	ineffective program performance, the board [committee] shall
363	363	review the report and shall consult with and may hold hearings with
364	364	the administrative head and the chair [chairman] of the governing
365	365	body of the affected department regarding the report.
366	366	(d) If the administrative head or the governing body of the
367	367	affected department refuses to make the changes recommended by the
368	368	board [committee] at the hearing or provide any additional
369	369	information or reports requested, the board [committee] shall
370	370	report the refusal to the legislature.
371	371	SECTION 2.21. Section 321.018, Government Code, is amended
372	372	to read as follows:
373	373	Sec. 321.018. SUBPOENAS. (a) The [At the request of the]
374	374	State Auditor or the board [on its own motion, the committee] may
375	375	subpoena witnesses or any books, records, or other documents
376	376	reasonably necessary to conduct an examination under this chapter.
377	377	(b) Each subpoena must be signed by either:
378	378	(1) the State Auditor; or
379	379	(2) one of the joint chairs of the board [committee or
380	380	the secretary of the committee].
381	381	(c) On the request of either the State Auditor or one of the
382	382	joint chairs of the board, a special agent of the office [committee
383	383	or the secretary of the committee], the sergeant at arms or an
384	384	assistant sergeant at arms of either house of the legislature, or
385	385	any peace officer shall serve the subpoena in the manner prescribed
386	386	for service of a district court subpoena.
387	387	(d) If the person to whom a subpoena is directed fails to
388	388	comply, the State Auditor or the board [committee] may bring suit in
389	389	district court to enforce the subpoena. If the court determines
390	390	that good cause exists for the issuance of the subpoena, the court
391	391	shall order compliance. The court may modify the requirements of a
392	392	subpoena that the court determines are unreasonable. Failure to
393	393	comply with the order of the district court is punishable as
394	394	contempt.
395	395	(e) The State Auditor or the board [committee] may provide
396	396	for the compensation of subpoenaed witnesses. The amount of
397	397	compensation may not exceed the amount paid to a witness subpoenaed
398	398	by a district court in a civil proceeding.
399	399	SECTION 2.22. The heading to Section 321.019, Government
400	400	Code, is amended to read as follows:
401	401	Sec. 321.019. INTERFERENCE WITH AUDIT OR INVESTIGATION;
402	402	CRIMINAL OFFENSE.
403	403	SECTION 2.23. Section 321.019, Government Code, is amended
404	404	by amending Subsection (b) and adding Subsection (c) to read as
405	405	follows:
406	406	(b) An offense under this section is a Class A misdemeanor,
407	407	except that the offense is a felony of the third degree if the audit
408	408	or investigation is related to funds made available by or provided
409	409	under the Recovery Act.
410	410	(c) An offense under this section may be prosecuted in the
411	411	county in which an element of the offense occurs or in Travis
412	412	County.
413	413	SECTION 2.24. Subchapter B, Chapter 321, Government Code,
414	414	as added by this Act, is amended by adding Section 321.0191 and
415	415	Sections 321.023 through 321.027 to read as follows:
416	416	Sec. 321.0191. REQUEST FOR INFORMATION; CIVIL PENALTY. (a)
417	417	The State Auditor may serve on the officer or employee of a
418	418	department or an entity subject to audit or investigation under
419	419	this chapter written requests for information or inspection of
420	420	property. A request under this section must:
421	421	(1) identify and describe with reasonable
422	422	particularity the information sought, documents to be produced, or
423	423	other property to which access is requested; and
424	424	(2) set forth the items to be inspected by individual
425	425	item or by category.
426	426	(b) An officer or employee who does not, without good cause,
427	427	produce the documents or grant access to the property before the
428	428	25th hour after the request is served is personally liable to the
429	429	state for a civil penalty of $1,000 for each day the conduct
430	430	continues, except that the civil penalty is $5,000 for each day the
431	431	conduct continues if the audit or investigation is related to funds
432	432	made available by or provided under the Recovery Act.
433	433	(c) The attorney general, the Travis County district
434	434	attorney, or the prosecuting attorney of the county in which a
435	435	violation is alleged to have occurred may sue to collect the
436	436	penalty.
437	437	Sec. 321.023. GOVERNMENT ACCOUNTABILITY RECOMMENDATIONS.
438	438	The office shall recommend policies for:
439	439	(1) the detection of fraud and abuse, including state
440	440	contract violations, conflicts of interest, and the inappropriate
441	441	use or unauthorized expenditure of state funds;
442	442	(2) the identification of participants in any detected
443	443	fraud or abuse;
444	444	(3) the termination or prosecution of state employees
445	445	in relation to detected fraud or abuse; and
446	446	(4) the exclusion of contractors from participation in
447	447	state contracts for detected fraud or abuse.
448	448	Sec. 321.024. RECEIPT AND INVESTIGATION OF COMPLAINTS AND
449	449	INFORMATION. (a) The State Auditor may receive and investigate
450	450	complaints and information concerning the possible existence of
451	451	fraud or abuse.
452	452	(b) The State Auditor shall establish and operate a
453	453	toll-free telephone line to be known as the Texas Government
454	454	Accountability Hotline that enables a person to call the hotline
455	455	number to:
456	456	(1) obtain information concerning audits or
457	457	investigations conducted by the office; or
458	458	(2) report an alleged violation of the laws of this
459	459	state related to government accountability, including laws related
460	460	to spending, procurement, and auditing, by any department or any
461	461	entity subject to audit or investigation under this chapter.
462	462	(c) The State Auditor shall establish an Internet web page
463	463	that permits a person to obtain information and report violations
464	464	as provided by Subsection (b).
465	465	(d) Each department and each entity subject to audit or
466	466	investigation under this chapter that maintains one or more
467	467	Internet web pages shall post on the department's or entity's home
468	468	page a prominent link to the Internet web page maintained by the
469	469	State Auditor under this section.
470	470	Sec. 321.025. LEGAL ASSISTANCE. On request of the State
471	471	Auditor, the Travis County district attorney or the prosecuting
472	472	attorney of the county in which an offense is alleged to have
473	473	occurred shall assist the State Auditor with investigations and
474	474	provide appropriate legal assistance.
475	475	Sec. 321.026. REFERRAL OF CERTAIN MATTERS. (a) After an
476	476	investigation of possible fraud or abuse, if the State Auditor
477	477	believes that fraud or abuse by a department may have resulted in
478	478	the inappropriate use or unauthorized expenditure of state funds,
479	479	the office may refer the matter to the Travis County district
480	480	attorney or the prosecuting attorney of the county in which an
481	481	offense or impropriety is alleged to have occurred and recommend
482	482	that the attorney pursue the recovery of state funds.
483	483	(b) After receiving a referral from the office under this
484	484	section, the Travis County district attorney or the prosecuting
485	485	attorney of the county in which an offense or impropriety is alleged
486	486	to have occurred shall review the request, make an independent
487	487	decision, and issue a written public opinion with respect to the
488	488	existence of fraud or abuse and whether the attorney intends to
489	489	pursue the recovery of state funds.
490	490	Sec. 321.027. REFERRAL OF MATTERS RELATED TO RECOVERY ACT.
491	491	Notwithstanding any other provision of law, a matter referred by
492	492	the State Auditor concerning fraud or other criminal activity in
493	493	connection with Recovery Act funds may be prosecuted in a county in
494	494	which an element of the offense occurs or in Travis County.
495	495	SECTION 2.25. Sections 322.015, 322.016, 322.0165,
496	496	322.017, and 322.018, Government Code, are transferred to Chapter
497	497	321, Government Code, renumbered as Sections 321.051, 321.052,
498	498	321.053, 321.054, and 321.055, Government Code, respectively,
499	499	designated as Subchapter C, Chapter 321, Government Code, and
500	500	amended, and a heading is added for Subchapter C, Chapter 321,
501	501	Government Code, to read as follows:
502	502	SUBCHAPTER C. PERFORMANCE REVIEWS
503	503	Sec. 321.051 [322.015]. REVIEW OF INTERSCHOLASTIC
504	504	COMPETITION. The office [board] may periodically review and
505	505	analyze the effectiveness and efficiency of the policies,
506	506	management, fiscal affairs, and operations of an organization that
507	507	is a component or part of a state agency or institution and that
508	508	sanctions or conducts interscholastic competition. The office
509	509	[board] shall report the findings to the governor and the
510	510	legislature. The legislature may consider the office's [board's]
511	511	reports in connection with the legislative appropriations process.
512	512	Sec. 321.052 [322.016]. PERFORMANCE REVIEW OF SCHOOL
513	513	DISTRICTS. (a) The office [board] may periodically review the
514	514	effectiveness and efficiency of the operations of school districts,
515	515	including the district's expenditures for its officers' and
516	516	employees' travel services. A review of a school district may be
517	517	initiated by the office [board] at the State Auditor's [its]
518	518	discretion or on the request of the school district. A review may
519	519	be initiated by a school district only by resolution adopted by a
520	520	majority of the members of the board of trustees of the district.
521	521	(b) If a review is initiated on the request of the school
522	522	district, the district shall pay 25 percent of the cost incurred in
523	523	conducting the review.
524	524	(c) The office [board] shall:
525	525	(1) prepare a report showing the results of each
526	526	review conducted under this section;
527	527	(2) file the report with the school district, the
528	528	governor, the lieutenant governor, the speaker of the house of
529	529	representatives, the chairs of the standing committees of the
530	530	senate and the house of representatives with jurisdiction over
531	531	public education, and the commissioner of education; and
532	532	(3) make the entire report and a summary of the report
533	533	available to the public on the Internet.
534	534	(d) Until the office [board] has completed a review under
535	535	this section, all information, documentary or otherwise, prepared
536	536	or maintained in conducting the review or preparing the review
537	537	report, including intra-agency and interagency communications and
538	538	drafts of the review report or portions of those drafts, is excepted
539	539	from required public disclosure as audit working papers under
540	540	Section 552.116. This subsection does not affect whether
541	541	information described by this subsection is confidential or
542	542	excepted from required public disclosure under a law other than
543	543	Section 552.116.
544	544	Sec. 321.053 [322.0165]. PERFORMANCE REVIEW OF
545	545	INSTITUTIONS OF HIGHER EDUCATION. (a) In this section, "public
546	546	junior college" and "general academic teaching institution" have
547	547	the meanings assigned by Section 61.003, Education Code.
548	548	(b) The office [board] may periodically review the
549	549	effectiveness and efficiency of the budgets and operations of:
550	550	(1) public junior colleges; and
551	551	(2) general academic teaching institutions.
552	552	(c) A review under this section may be initiated by the
553	553	office [board] or at the request of:
554	554	(1) the governor; or
555	555	(2) the public junior college or general academic
556	556	teaching institution.
557	557	(d) A review may be initiated by a public junior college or
558	558	general academic teaching institution only at the request of the
559	559	president of the college or institution or by a resolution adopted
560	560	by a majority of the governing body of the college or institution.
561	561	(e) If a review is initiated by a public junior college or
562	562	general academic teaching institution, the college or institution
563	563	shall pay 25 percent of the cost incurred in conducting the review.
564	564	(f) The office [board] shall:
565	565	(1) prepare a report showing the results of each
566	566	review conducted under this section;
567	567	(2) file the report with:
568	568	(A) the chief executive officer of the public
569	569	junior college or general academic teaching institution that is the
570	570	subject of the report; and
571	571	(B) the governor, the lieutenant governor, the
572	572	speaker of the house of representatives, the chairs of the standing
573	573	committees of the senate and of the house of representatives with
574	574	primary jurisdiction over higher education, and the commissioner of
575	575	higher education; and
576	576	(3) make the entire report and a summary of the report
577	577	available to the public on the Internet.
578	578	(g) Until the office [board] has completed a review under
579	579	this section, all information, documentary or otherwise, prepared
580	580	or maintained in conducting the review or preparing the review
581	581	report, including intra-agency and interagency communications and
582	582	drafts of the review report or portions of those drafts, is excepted
583	583	from required public disclosure as audit working papers under
584	584	Section 552.116. This subsection does not affect whether
585	585	information described by this subsection is confidential or
586	586	excepted from required public disclosure under a law other than
587	587	Section 552.116.
588	588	Sec. 321.054 [322.017]. EFFICIENCY REVIEW OF STATE
589	589	AGENCIES. (a) In this section, "state agency" has the meaning
590	590	assigned by Section 2056.001.
591	591	(b) The office [board] periodically may review and analyze
592	592	the effectiveness and efficiency of the policies, management,
593	593	fiscal affairs, and operations of state agencies.
594	594	(c) The office [board] shall report the findings of the
595	595	review and analysis to the governor and the legislature.
596	596	(d) The legislature may consider the office's [board's]
597	597	reports in connection with the legislative appropriations process.
598	598	(e) Until the office [board] has completed a review and
599	599	analysis under this section, all information, documentary or
600	600	otherwise, prepared or maintained in conducting the review and
601	601	analysis or preparing the review report, including intra-agency and
602	602	interagency communications and drafts of the review report or
603	603	portions of those drafts, is excepted from required public
604	604	disclosure as audit working papers under Section 552.116. This
605	605	subsection does not affect whether information described by this
606	606	subsection is confidential or excepted from required public
607	607	disclosure under a law other than Section 552.116.
608	608	Sec. 321.055 [322.018]. RECORDS MANAGEMENT REVIEW. (a) In
609	609	this section, "state agency" has the meaning assigned by Section
610	610	2056.001.
611	611	(b) The office [board] may periodically review and analyze
612	612	the effectiveness and efficiency of the policies and management of
613	613	a state governmental committee or state agency that is involved in:
614	614	(1) analyzing and recommending improvements to the
615	615	state's system of records management; and
616	616	(2) preserving the essential records of this state,
617	617	including records relating to financial management information.
618	618	ARTICLE 3. LEGISLATIVE BUDGET BOARD
619	619	SECTION 3.01. Section 322.001(a), Government Code, is
620	620	amended to read as follows:
621	621	(a) The Legislative Budget Board consists of:
622	622	(1) the lieutenant governor;
623	623	(2) the speaker of the house of representatives;
624	624	(3) the chair [chairman] of the senate finance
625	625	committee;
626	626	(4) the chair [chairman] of the house appropriations
627	627	committee;
628	628	(5) the chair [chairman] of the house ways and means
629	629	committee;
630	630	(6) five [three] members of the senate appointed by
631	631	the lieutenant governor; and
632	632	(7) four [two] other members of the house appointed by
633	633	the speaker.
634	634	SECTION 3.02. Chapter 322, Government Code, is amended by
635	635	adding Section 322.002 to read as follows:
636	636	Sec. 322.002. SUNSET PROVISION. The board is subject to
637	637	review under Chapter 325 (Texas Sunset Act) but is not abolished
638	638	under that chapter. The board shall be reviewed during the periods
639	639	in which state agencies scheduled to be abolished in 2013.
640	640	SECTION 3.03. Chapter 322, Government Code, is amending by
641	641	adding Section 322.0031 to read as follows:
642	642	Sec. 322.0031. MEETINGS RELATED TO RECOVERY ACT. Beginning
643	643	July 1, 2009, the board shall meet at least once every two months in
644	644	Austin to take testimony and receive evidence related to funds
645	645	received by the state from the federal government for economic
646	646	stabilization, including funds received under the American
647	647	Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5). This
648	648	section expires January 1, 2011.
649	649	ARTICLE 4. TEXAS LEGISLATIVE COUNCIL
650	650	SECTION 4.01. Section 323.001(b), Government Code, is
651	651	amended to read as follows:
652	652	(b) The council consists of:
653	653	(1) the lieutenant governor;
654	654	(2) the speaker of the house of representatives;
655	655	(3) the chair [chairman] of the house administration
656	656	committee;
657	657	(4) eight [six] senators from various areas of the
658	658	state appointed by the president of the senate; and
659	659	(5) seven [five] other members of the house of
660	660	representatives from various areas of the state appointed by the
661	661	speaker.
662	662	SECTION 4.02. Chapter 323, Government Code, is amended by
663	663	adding Section 323.002 to read as follows:
664	664	Sec. 323.002. SUNSET PROVISION. The council is subject to
665	665	review under Chapter 325 (Texas Sunset Act) but is not abolished
666	666	under that chapter. The council shall be reviewed during the
667	667	periods in which state agencies scheduled to be abolished in 2013.
668	668	SECTION 4.03. Section 323.0145(a), Government Code, is
669	669	amended by amending Subdivision (2) and adding Subdivision (3) to
670	670	read as follows:
671	671	(2) "Legislative information" means:
672	672	(A) a list of all the members of each house of the
673	673	legislature;
674	674	(B) a list of the committees of the legislature
675	675	and their members;
676	676	(C) the full text of each bill as filed and as
677	677	subsequently amended, substituted, engrossed, or enrolled in
678	678	either house of the legislature;
679	679	(D) the full text of each amendment or substitute
680	680	adopted by a legislative committee for each bill filed in either
681	681	house of the legislature;
682	682	(E) the calendar of each house of the
683	683	legislature, the schedule of legislative committee hearings, and a
684	684	list of the matters pending on the floor of each house of the
685	685	legislature;
686	686	(F) detailed procedural information about how a
687	687	bill filed in either house of the legislature becomes law,
688	688	including detailed timetable information concerning the times
689	689	under the constitution or the rules of either house when the
690	690	legislature may take certain actions on a bill;
691	691	(G) the district boundaries or other identifying
692	692	information for the following districts in Texas:
693	693	(i) house of representatives;
694	694	(ii) senate;
695	695	(iii) State Board of Education; and
696	696	(iv) United States Congress; [and]
697	697	(H) information about legislative oversight of
698	698	Recovery Act funds, including the committees of each house and each
699	699	legislative agency responsible for providing oversight of or
700	700	information about Recovery Act funds; and
701	701	(I) other information related to the legislative
702	702	process that in the council's opinion should be made available
703	703	through the Internet.
704	704	(3) "Recovery Act" means the American Recovery and
705	705	Reinvestment Act of 2009 (Pub. L. No. 111-5) and includes any
706	706	subsequent federal economic stimulus legislation.
707	707	SECTION 4.04. Section 323.0145(b), Government Code, is
708	708	amended to read as follows:
709	709	(b) The council, to the extent it considers it to be
710	710	feasible and appropriate, may make legislative information
711	711	available to the public through the Internet. The council shall
712	712	make legislative information related to the Recovery Act available
713	713	to the public through the Internet.
714	714	ARTICLE 5. LEGISLATIVE REFERENCE LIBRARY
715	715	SECTION 5.01. Chapter 324, Government Code, is amended by
716	716	adding Section 324.003 to read as follows:
717	717	Sec. 324.003. SUNSET PROVISION. The board and the library
718	718	are subject to review under Chapter 325 (Texas Sunset Act) but are
719	719	not abolished under that chapter. The board and the library shall
720	720	be reviewed during the periods in which state agencies scheduled to
721	721	be abolished in 2013.
722	722	SECTION 5.02. Section 324.004, Government Code, is amended
723	723	by amending Subsection (b) and adding Subsection (b-1) to read as
724	724	follows:
725	725	(b) The board consists of:
726	726	(1) the lieutenant governor;
727	727	(2) the speaker of the house of representatives;
728	728	(3) the chair [chairman] of the house appropriations
729	729	committee;
730	730	(4) four [two] members of the senate appointed by the
731	731	lieutenant governor; and
732	732	(5) three [one] other members [member] of the house
733	733	appointed by the speaker.
734	734	(b-1) The lieutenant governor and the speaker are joint
735	735	chairs of the board.
736	736	SECTION 5.03. Chapter 324, Government Code, is amended by
737	737	adding Section 324.0081 to read as follows:
738	738	Sec. 324.0081. RECOVERY ACT DEPOSITORY. (a) The library
739	739	shall serve as the central depository for all Recovery Act
740	740	publications.
741	741	(b) Each state or local governmental entity and each private
742	742	entity receiving, disbursing, investigating, auditing, or
743	743	reporting the use of Recovery Act funds received by or through a
744	744	governmental entity in this state shall provide the library with a
745	745	copy of each Recovery Act publication produced, assembled, or
746	746	maintained by the entity.
747	747	(c) To the extent feasible, the library shall make Recovery
748	748	Act publications available for public viewing on the Internet.
749	749	(d) In this section:
750	750	(1) "Recovery Act" means the American Recovery and
751	751	Reinvestment Act of 2009 (Pub. L. No. 111-5) and includes any
752	752	subsequent federal economic stimulus legislation.
753	753	(2) "Recovery Act publication":
754	754	(A) means information in any format, including
755	755	materials in a physical format or in an electronic format, related
756	756	in any way to the receipt, disbursement, expenditure, or audit of
757	757	Recovery Act funds, including a report regarding Recovery Act
758	758	funds, that:
759	759	(i) is produced, assembled, or maintained
760	760	by or for a state or local governmental entity receiving Recovery
761	761	Act funds or an entity receiving Recovery Act funds through a
762	762	governmental entity in this state; and
763	763	(ii) is distributed to persons outside the
764	764	entity or distributed to persons within the entity; and
765	765	(B) does not include information the
766	766	distribution of which is limited to members of the public under a
767	767	request made under Chapter 552.
768	768	ARTICLE 6. SUNSET ADVISORY COMMISSION
769	769	SECTION 6.01. Chapter 325, Government Code, is amended by
770	770	adding Section 325.0115 to read as follows:
771	771	Sec. 325.0115. CRITERIA FOR REVIEW OF CERTAIN LEGISLATIVE
772	772	AGENCIES. (a) Notwithstanding Section 325.011, for the initial
773	773	review of a legislative agency, board, or council subject to review
774	774	under this chapter in 2013, the commission and its staff may only
775	775	consider the extent to which the agency, board, or council
776	776	discharged its responsibilities related to Recovery Act funds under
777	777	this subtitle and any other applicable law.
778	778	(b) In this section, "Recovery Act" means the American
779	779	Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5) and
780	780	includes any subsequent federal economic stimulus legislation.
781	781	(c) This section expires January 1, 2014.
782	782	ARTICLE 7. RECOVERY ACT ACCOUNTABILITY BOARD
783	783	SECTION 7.01. Subtitle C, Title 3, Government Code, is
784	784	amended by adding Chapter 331 to read as follows:
785	785	CHAPTER 331. RECOVERY ACT ACCOUNTABILITY BOARD
786	786	Sec. 331.001. DEFINITIONS. In this chapter:
787	787	(1) "Recovery Act" means the American Recovery and
788	788	Reinvestment Act of 2009 (Pub. L. No. 111-5) and includes any
789	789	subsequent federal economic stimulus legislation.
790	790	(2) "Board" means the Recovery Act Accountability
791	791	Board.
792	792	(3) "Legislative agency" means:
793	793	(A) the Texas Legislative Council;
794	794	(B) the Legislative Budget Board;
795	795	(C) the Legislative Reference Library;
796	796	(D) the State Accountability Office; or
797	797	(E) any other agency in the legislative branch of
798	798	state government.
799	799	Sec. 331.002. RECOVERY ACT ACCOUNTABILITY BOARD. (a) The
800	800	Recovery Act Accountability Board consists of:
801	801	(1) the following voting members:
802	802	(A) the lieutenant governor;
803	803	(B) the speaker of the house of representatives;
804	804	(C) one senate member, designated by the
805	805	lieutenant governor, and one house member, designated by the
806	806	speaker, of the Legislative Audit Board;
807	807	(D) one senate member, designated by the
808	808	lieutenant governor, and one house member, designated by the
809	809	speaker, of the Legislative Budget Board;
810	810	(E) one senate member, designated by the
811	811	lieutenant governor, and one house member, designated by the
812	812	speaker, of the Texas Legislative Council;
813	813	(F) one senate member, designated by the
814	814	lieutenant governor, and one house member, designated by the
815	815	speaker, of the Sunset Advisory Commission;
816	816	(G) one senate member, designated by the
817	817	lieutenant governor, and one house member, designated by the
818	818	speaker, of the Legislative Library Board;
819	819	(H) the chair and vice chair of the House Select
820	820	Committee on Federal Economic Stabilization Funding;
821	821	(I) four other members of the senate, designated
822	822	by the lieutenant governor;
823	823	(J) four other members of the house, designated
824	824	by the speaker;
825	825	(K) two public members appointed by the
826	826	lieutenant governor; and
827	827	(L) two public members appointed by the speaker;
828	828	and
829	829	(2) the following nonvoting members:
830	830	(A) four members of the United States Congress
831	831	from this state, with two members selected by the members of each
832	832	political party required by law to hold a primary; and
833	833	(B) the chief administrative officer of each
834	834	legislative agency, except the State Accountability Office.
835	835	(b) One of the members appointed under Subsection (a)(1)
836	836	must be the chair of the Senate Finance Committee. One other member
837	837	appointed under Subsection (a)(1) must be the chair of the House
838	838	Appropriations Committee.
839	839	(c) The lieutenant governor and the speaker are joint chairs
840	840	of the board.
841	841	(d) A legislative member serving on the board because of the
842	842	member's service on another board, commission, or committee serves
843	843	a term coinciding with the member's service on the other board,
844	844	commission, or committee. Other legislative members and public
845	845	members serve for the term of the board.
846	846	(e) If a vacancy occurs in the appointed membership, the
847	847	appropriate appointing authority shall appoint a person to serve
848	848	for the remainder of the unexpired term.
849	849	(f) Each member of the board is entitled to reimbursement
850	850	for actual and necessary expenses incurred in performing board
851	851	duties. Each legislative member is entitled to reimbursement from
852	852	the appropriate fund of the member's respective house. Each public
853	853	member is entitled to reimbursement from the appropriate fund of
854	854	the house of the appointing authority.
855	855	Sec. 331.003. TERM OF BOARD; EXPIRATION. The board is
856	856	abolished and this chapter expires December 31, 2013.
857	857	Sec. 331.004. ADMINISTRATIVE OFFICER. The board shall
858	858	select a chief administrative officer of the board. An officer or
859	859	employee of a legislative agency, other than the State
860	860	Accountability Office, is eligible for appointment under this
861	861	section.
862	862	Sec. 331.005. MEETINGS. Beginning July 1, 2009, the board
863	863	shall meet at least once each month in Austin to take testimony and
864	864	receive evidence related to funds received by governmental entities
865	865	in this state from the federal government for economic
866	866	stabilization, including funds received under the Recovery Act.
867	867	Sec. 331.006. POWERS AND DUTIES. The board:
868	868	(1) shall coordinate reviews of spending of Recovery
869	869	Act funds conducted by a legislative agency to ensure that
870	870	duplication and overlap of legislative agency work is avoided;
871	871	(2) may hold hearings and conduct investigations and
872	872	surveys as provided by Section 331.008;
873	873	(3) shall ensure the public has access to vital
874	874	information related to the expenditure of Recovery Act funds;
875	875	(4) may prescribe performance measures in addition to
876	876	those prescribed by Section 331.007;
877	877	(5) may make recommendations regarding interagency
878	878	coordination, opportunities that concern multiple units of
879	879	government, and opportunities for public-private partnerships
880	880	using Recovery Act funds; and
881	881	(6) may appoint advisory committees as necessary to
882	882	assist the board.
883	883	Sec. 331.007. RECIPIENT AGENCY REPORTS; PERFORMANCE
884	884	MEASURES. Not later than the 10th day after the date a state fiscal
885	885	quarter ends, each governmental entity that receives Recovery Act
886	886	funds shall submit a report to the board that contains:
887	887	(1) the amount of Recovery Act funding received by a
888	888	public or private entity by or through the governmental entity
889	889	under the Act;
890	890	(2) the citation to the specific provision of the
891	891	Recovery Act under which the funding is provided;
892	892	(3) any outstanding requirements or unmet deadlines
893	893	for applying for Recovery Act funds;
894	894	(4) any changes in any requirements associated with
895	895	Recovery Act funding, including spending limitations, state match
896	896	or cost share requirements, percentage limitations, and
897	897	timeframes;
898	898	(5) the date on which each type of Recovery Act funding
899	899	discussed in the report is anticipated to end;
900	900	(6) whether any additional authority is necessary to
901	901	spend the Recovery Act funds;
902	902	(7) the number of additional state employees actually
903	903	employed or projected to be needed to oversee or administer
904	904	Recovery Act funds;
905	905	(8) current plans for addressing how each agency will
906	906	conduct its operations when Recovery Act funds end;
907	907	(9) a detailed list of all projects or activities for
908	908	which Recovery Act funds were expended or obligated, including:
909	909	(A) the name of the project or activity;
910	910	(B) a description of the project or activity; and
911	911	(C) an evaluation of the completion status of the
912	912	project or activity;
913	913	(10) an assessment of the performance of all Recovery
914	914	Act funds expended or obligated relating to specific performance
915	915	measures, including:
916	916	(A) the number of new jobs created in this state;
917	917	(B) the number of new jobs created in small and
918	918	medium-sized businesses;
919	919	(C) the estimated economic benefit for small and
920	920	medium-sized businesses;
921	921	(D) the number of new jobs created in women-owned
922	922	and minority-owned businesses;
923	923	(E) the estimated economic benefit for
924	924	women-owned and minority-owned businesses;
925	925	(F) the number of new jobs created in distressed
926	926	areas;
927	927	(G) the estimated economic benefit in distressed
928	928	areas;
929	929	(H) the number of new jobs created at or above the
930	930	median hourly wage in this state;
931	931	(I) the increase in jobs providing access to
932	932	employer-sponsored health insurance; and
933	933	(J) any other performance measures prescribed by
934	934	the board; and
935	935	(11) an impact statement detailing the impact, if any,
936	936	of Recovery Act funds on:
937	937	(A) the extent to which electric utility
938	938	customers in this state have increased access to renewable energy;
939	939	(B) carbon emissions in this state resulting from
940	940	energy and transportation projects, including any emissions
941	941	reductions; and
942	942	(C) the extent to which per capita electric usage
943	943	in this state is reduced as a result of energy efficiency
944	944	initiatives.
945	945	Sec. 331.008. HEARINGS; INVESTIGATIONS AND SURVEYS. (a)
946	946	The board may make investigations and surveys regarding funds
947	947	received by governmental entities in this state from the federal
948	948	government for economic stabilization, including Recovery Act
949	949	funds, and may hold public or executive hearings in connection with
950	950	those investigations and surveys.
951	951	(b) A hearing shall be held at a time and place in the state
952	952	determined by the board.
953	953	(c) The board may:
954	954	(1) inspect and copy any book, record, file, or other
955	955	instrument or document of a governmental entity in this state that
956	956	is pertinent to a matter under investigation by the board; and
957	957	(2) examine and audit the books of a person, firm, or
958	958	corporation having dealings with a governmental entity under
959	959	investigation by the board.
960	960	(d) Any member of the board may administer oaths to
961	961	witnesses appearing at the hearing.
962	962	Sec. 331.009. SUBPOENAS. (a) The board may issue subpoenas
963	963	to compel the attendance of witnesses and the production of books,
964	964	records, or other documents in their custody.
965	965	(b) A subpoena must be signed by either of the joint chairs
966	966	of the board.
967	967	(c) The sergeant at arms of either house of the legislature
968	968	or any peace officer shall serve the subpoena in the manner
969	969	prescribed for service of a district court subpoena.
970	970	(d) If a person to whom a subpoena is directed refuses to
971	971	appear, refuses to answer inquiries, or fails or refuses to produce
972	972	books, records, or other documents that were under the person's
973	973	control when the demand was made, the board shall report the fact to
974	974	a Travis County district court.
975	975	(e) The district court shall enforce a board subpoena by
976	976	attachment proceedings for contempt in the same manner the court
977	977	enforces a subpoena issued by that court.
978	978	(f) A subpoenaed witness who attends a board hearing or
979	979	meeting is entitled to the same mileage and per diem as a witness
980	980	who appears before a grand jury of this state.
981	981	Sec. 331.010. ASSISTANCE FROM OTHER AGENCIES; CONTRACTS.
982	982	(a) The board may request assistance and advice from a legislative
983	983	agency or any other state officer, department, board, commission,
984	984	or agency, including the governor and the attorney general.
985	985	(b) Either of the joint chairs may request legal opinions or
986	986	other advice or assistance from:
987	987	(1) the counselor of the State Accountability Office;
988	988	or
989	989	(2) the director of the legal division of the Texas
990	990	Legislative Council.
991	991	ARTICLE 8. PROVISIONS APPLICABLE TO ALL LEGISLATIVE AGENCIES
992	992	SECTION 8.01. The heading to Chapter 326, Government Code,
993	993	is amended to read as follows:
994	994	CHAPTER 326. PROVISIONS GENERALLY APPLICABLE TO [COOPERATION
995	995	BETWEEN] LEGISLATIVE AGENCIES AND OVERSIGHT COMMITTEES
996	996	SECTION 8.02. Chapter 326, Government Code, is amended by
997	997	designating Sections 326.001 through 326.003 as Subchapter A and
998	998	adding a heading for Subchapter A to read as follows:
999	999	SUBCHAPTER A. COOPERATION BETWEEN LEGISLATIVE AGENCIES
1000	1000	SECTION 8.03. Section 326.001, Government Code, is amended
1001	1001	to read as follows:
1002	1002	Sec. 326.001. DEFINITION. In this subchapter [chapter],
1003	1003	"legislative agency" means:
1004	1004	(1) the senate;
1005	1005	(2) the house of representatives;
1006	1006	(3) a committee, division, department, or office of
1007	1007	the senate or house;
1008	1008	(4) the Texas Legislative Council;
1009	1009	(5) the Legislative Budget Board;
1010	1010	(6) the Legislative Reference Library;
1011	1011	(7) the [office of the] State Accountability Office
1012	1012	[Auditor];
1013	1013	(7-a) the Recovery Act Accountability Board; or
1014	1014	(8) any other agency in the legislative branch of
1015	1015	state government.
1016	1016	SECTION 8.04. The heading to Section 326.003, Government
1017	1017	Code, is amended to read as follows:
1018	1018	Sec. 326.003. COMMITTEE OF STATE ACCOUNTABILITY
1019	1019	[AUDITOR'S] OFFICE, LEGISLATIVE BUDGET BOARD, AND SUNSET ADVISORY
1020	1020	COMMISSION.
1021	1021	SECTION 8.05. Sections 326.003(a) and (d), Government Code,
1022	1022	are amended to read as follows:
1023	1023	(a) The State Accountability [Auditor's] Office,
1024	1024	Legislative Budget Board, and Sunset Advisory Commission shall form
1025	1025	a committee to make recommendations relating to the coordination of
1026	1026	the agencies' functions.
1027	1027	(d) Not later than one month after the date of a meeting, the
1028	1028	committee shall submit its recommendations in writing to the head
1029	1029	of each agency and the members of the legislative audit board
1030	1030	[committee].
1031	1031	SECTION 8.06. Chapter 326, Government Code, is amended by
1032	1032	adding Subchapter B to read as follows:
1033	1033	SUBCHAPTER B. QUORUM AND MEETINGS
1034	1034	Sec. 326.021. DEFINITION. In this subchapter, "legislative
1035	1035	entity" means:
1036	1036	(1) the Legislative Audit Board;
1037	1037	(2) the Legislative Budget Board;
1038	1038	(3) the Legislative Library Board;
1039	1039	(4) the Texas Legislative Council;
1040	1040	(5) the Recovery Act Accountability Board; and
1041	1041	(6) any other oversight committee created under this
1042	1042	subtitle.
1043	1043	Sec. 326.022. CONFLICT WITH OTHER LAW. To the extent of a
1044	1044	conflict between this subchapter and any other provision of this
1045	1045	subtitle, the other provision of this subtitle prevails.
1046	1046	Sec. 326.023. QUORUM. (a) Except as provided by Subsection
1047	1047	(b), a majority of the members of a legislative entity from each
1048	1048	house constitutes a quorum to transact business. If a quorum is
1049	1049	present, the legislative entity may act on any matter that is within
1050	1050	its jurisdiction by a majority vote.
1051	1051	(b) Two members of a legislative entity from each house
1052	1052	constitutes a quorum for the taking of testimony and receiving
1053	1053	evidence.
1054	1054	Sec. 326.024. MEETINGS. (a) A legislative entity shall
1055	1055	meet as often as necessary to perform its duties. A legislative
1056	1056	entity shall meet at least once every six months. Meetings may be
1057	1057	held at any time at the request of either of the joint chairs of a
1058	1058	legislative entity or on written petition of two of the members of a
1059	1059	legislative entity from each house.
1060	1060	(b) Each member of the legislature is entitled to attend and
1061	1061	present the member's views in any meeting of the legislative
1062	1062	entity. A legislator who is not a member of the legislative entity
1063	1063	may not vote.
1064	1064	(c) As an exception to Chapter 551 and other law, if a
1065	1065	meeting is located in Austin and the joint chairs of a legislative
1066	1066	entity are physically present at the meeting, then any number of the
1067	1067	other members of the legislative entity may attend the meeting by
1068	1068	use of telephone conference call, videoconference call, or other
1069	1069	similar telecommunication device. This subsection applies for
1070	1070	purposes of constituting a quorum, for purposes of voting, and for
1071	1071	any other purpose allowing a member of the legislative entity to
1072	1072	otherwise fully participate in any meeting of the legislative
1073	1073	entity. This subsection applies without exception with regard to
1074	1074	the subject of the meeting or topics considered by the members.
1075	1075	(d) A meeting held by use of telephone conference call,
1076	1076	videoconference call, or other similar telecommunication device:
1077	1077	(1) is subject to the notice requirements applicable
1078	1078	to other meetings;
1079	1079	(2) must specify in the notice of the meeting the
1080	1080	location in Austin of the meeting at which the joint chairs will be
1081	1081	physically present;
1082	1082	(3) must be open to the public and shall be audible to
1083	1083	the public at the location in Austin specified in the notice of the
1084	1084	meeting as the location of the meeting at which the joint chairs
1085	1085	will be physically present; and
1086	1086	(4) must provide two-way audio communication between
1087	1087	all members of the legislative entity attending the meeting during
1088	1088	the entire meeting, and if the two-way audio communication link
1089	1089	with any member attending the meeting is disrupted at any time, the
1090	1090	meeting may not continue until the two-way audio communication link
1091	1091	is reestablished.
1092	1092	SECTION 8.07. Section 783.003(4), Government Code, is
1093	1093	amended to read as follows:
1094	1094	(4) "State agency" means a state board, commission, or
1095	1095	department, or office having statewide jurisdiction, but does not
1096	1096	include a state college or university or an agency of the
1097	1097	legislative branch of state government.
1098	1098	ARTICLE 9. PROVISIONS APPLICABLE TO CERTAIN COUNTIES
1099	1099	SECTION 9.01. Subchapter A, Chapter 112, Local Government
1100	1100	Code, is amended by adding Section 112.011 to read as follows:
1101	1101	Sec. 112.011. ELECTRONIC CHECKING ACCOUNT TRANSACTION
1102	1102	REGISTER. (a) This section applies only to a county with a
1103	1103	population of 250,000 or more that has received funds under the
1104	1104	American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5)
1105	1105	and is subject to audit by the office of the state auditor.
1106	1106	(b) The county treasurer shall maintain the transaction
1107	1107	register for the county's checking account as a list in a searchable
1108	1108	electronic spreadsheet format, such as a portable document format
1109	1109	(PDF) or similar file type, in which the transaction register is
1110	1110	readily available for purposes of Subsection (d). Except as
1111	1111	provided by Subsection (c), the electronic checking account
1112	1112	transaction register must include for each check written from a
1113	1113	county checking account:
1114	1114	(1) the transaction amount;
1115	1115	(2) the name of the payee; and
1116	1116	(3) a statement of the purpose of the expenditure for
1117	1117	which the check was written.
1118	1118	(b-1) Notwithstanding Subsection (b), beginning September
1119	1119	1, 2010, a county's electronic checking account transaction
1120	1120	register must contain the information required by Subsections
1121	1121	(b)(1) and (2) for each check dated on or after August 1, 2010.
1122	1122	Beginning September 1, 2011, a county's electronic checking account
1123	1123	transaction register must contain the information required by
1124	1124	Subsections (b)(1) through (3) for each check dated on or after
1125	1125	August 1, 2011. This subsection expires October 1, 2011.
1126	1126	(c) A county may not include in the county's electronic
1127	1127	checking account transaction register a check issued to:
1128	1128	(1) a county employee in payment of:
1129	1129	(A) salary, wages, or an employment stipend; or
1130	1130	(B) a workers' compensation income benefit,
1131	1131	medical benefit, death benefit, or burial benefit that is issued by
1132	1132	a county operating as a self-insurer under Chapter 504, Labor Code;
1133	1133	or
1134	1134	(2) a court-appointed attorney, including an attorney
1135	1135	in a juvenile justice court.
1136	1136	(d) A county shall post the electronic checking account
1137	1137	transaction register at all times on the county's Internet website
1138	1138	for viewing and downloading by interested persons. The county may
1139	1139	not charge a fee to a person who views or downloads the electronic
1140	1140	checking account transaction register under this subsection.
1141	1141	(e) A county shall:
1142	1142	(1) update the electronic checking account
1143	1143	transaction register at least once each month, not later than the
1144	1144	30th day after the closing date of the most recent monthly statement
1145	1145	for the checking account; and
1146	1146	(2) maintain each transaction or listing in the
1147	1147	electronic checking account transaction register on the county's
1148	1148	Internet website until the first anniversary of the date of the
1149	1149	transaction or listing.
1150	1150	(f) The county treasurer may consult with the comptroller in
1151	1151	developing an electronic checking account transaction register
1152	1152	under this section.
1153	1153	(g) This section does not apply to a county that maintains a
1154	1154	check registry or a similar comprehensive monthly financial report
1155	1155	that was posted on the county's Internet website for public viewing
1156	1156	and downloading on or before August 1, 2010.
1157	1157	(h) Nothing in this section shall be construed as requiring
1158	1158	a county to provide access to the county's bank account statement or
1159	1159	to post additional information, including check numbers, not
1160	1160	required under Subsection (b).
1161	1161	ARTICLE 10. INSPECTOR GENERAL
1162	1162	SECTION 10.01. Subtitle B, Title 4, Government Code, is
1163	1163	amended by adding Chapter 422 to read as follows:
1164	1164	CHAPTER 422. OFFICE OF INSPECTOR GENERAL
1165	1165	SUBCHAPTER A. GENERAL PROVISIONS
1166	1166	Sec. 422.001. SHORT TITLE. This chapter may be cited as the
1167	1167	Office of Inspector General Act.
1168	1168	Sec. 422.002. DEFINITIONS. In this chapter:
1169	1169	(1) "Agency" means a board, commission, committee,
1170	1170	department, office, division, or other agency of the executive
1171	1171	branch of state government. The term does not include an
1172	1172	institution of higher education as defined by Section 61.003,
1173	1173	Education Code.
1174	1174	(2) "Commission" means the Health and Human Services
1175	1175	Commission.
1176	1176	(3) "Fraud" means an intentional deception or
1177	1177	misrepresentation made by a person with the knowledge that the
1178	1178	deception could result in some unauthorized benefit to that person
1179	1179	or some other person. The term includes any act that constitutes
1180	1180	fraud under applicable federal or state law.
1181	1181	(4) "Furnished," in reference to items or services:
1182	1182	(A) means items or services provided directly by,
1183	1183	provided under the direct supervision of, or ordered by:
1184	1184	(i) a physician or other individual
1185	1185	licensed under state law to practice the individual's profession,
1186	1186	either as an employee or in the individual's own capacity;
1187	1187	(ii) a provider; or
1188	1188	(iii) another supplier of services; and
1189	1189	(B) does not include services ordered by one
1190	1190	party but billed for and provided by or under the supervision of
1191	1191	another.
1192	1192	(5) "Hold on payment" means the temporary denial of
1193	1193	reimbursement under a federal program for items or services
1194	1194	furnished by a specified provider.
1195	1195	(6) "Inspector general" means the inspector general
1196	1196	appointed under Section 422.101.
1197	1197	(7) "Office" means the office of inspector general
1198	1198	established under this chapter.
1199	1199	(8) "Program exclusion" means the suspension of a
1200	1200	provider's authorization under a federal program to request
1201	1201	reimbursement for items or services furnished by that provider.
1202	1202	(9) "Provider" means a person, firm, partnership,
1203	1203	corporation, agency, association, institution, or other entity
1204	1204	that was or is approved by the commission to provide:
1205	1205	(A) medical assistance under contract or
1206	1206	provider agreement with the commission; or
1207	1207	(B) third-party billing vendor services under a
1208	1208	contract or provider agreement with the commission.
1209	1209	(10) "Review" includes an audit, inspection,
1210	1210	investigation, evaluation, or similar activity.
1211	1211	(11) "State funds" or "state money" includes federal
1212	1212	funds or money received and appropriated by the state or for which
1213	1213	the state has oversight responsibility.
1214	1214	Sec. 422.003. APPLICATION OF SUNSET ACT. The office of
1215	1215	inspector general is subject to Chapter 325 (Texas Sunset Act).
1216	1216	Unless continued in existence as provided by that chapter, the
1217	1217	office is abolished and this chapter expires September 1, 2021.
1218	1218	Sec. 422.004. AGENCY ESTABLISHMENT OF INSPECTOR GENERAL
1219	1219	OFFICE. An agency may not establish an office of inspector general
1220	1220	without specific legislative authorization.
1221	1221	Sec. 422.005. REFERENCE IN OTHER LAW. (a) Notwithstanding
1222	1222	any other provision of law, a reference in law or rule to an
1223	1223	agency's office of inspector general means the office of inspector
1224	1224	general established under this chapter.
1225	1225	(b) Notwithstanding any other provision of law, a reference
1226	1226	in law or rule to the commission's office of investigations and
1227	1227	enforcement or the commission's office of inspector general means
1228	1228	the office of inspector general established under this chapter.
1229	1229	[Sections 422.006-422.050 reserved for expansion]
1230	1230	SUBCHAPTER B. ADMINISTRATION
1231	1231	Sec. 422.051. OFFICE OF INSPECTOR GENERAL. (a) The office
1232	1232	of inspector general is an agency of this state.
1233	1233	(b) The office is governed by the inspector general.
1234	1234	(c) The office shall have its principal office and
1235	1235	headquarters in Austin.
1236	1236	(d) The office consists of the inspector general, deputy
1237	1237	inspectors general, and other personnel necessary to carry out the
1238	1238	duties of the inspector general.
1239	1239	Sec. 422.052. INDEPENDENCE OF OFFICE. (a) Except as
1240	1240	otherwise provided by this chapter, the office and inspector
1241	1241	general operate independently of any other agency.
1242	1242	(b) The inspector general, a deputy inspector general, and
1243	1243	the office staff are not employees of any other agency.
1244	1244	Sec. 422.053. ADMINISTRATIVE ATTACHMENT. A person
1245	1245	designated by the inspector general to serve as the deputy
1246	1246	inspector general for an agency, together with office staff
1247	1247	assigned to the deputy inspector general, are administratively
1248	1248	attached to the assigned agency. The assigned agency shall provide
1249	1249	to office personnel administrative support services.
1250	1250	Sec. 422.054. SERVICE LEVEL AGREEMENT. (a) The office and
1251	1251	each agency to which a deputy inspector general is appointed shall
1252	1252	enter into a service level agreement that establishes the
1253	1253	performance standards and deliverables with regard to
1254	1254	administrative support provided to the office by the agency.
1255	1255	(b) The service level agreement must be reviewed at least
1256	1256	annually to ensure that services and deliverables are provided in
1257	1257	accordance with the agreement.
1258	1258	(c) The commission shall provide to the deputy inspector
1259	1259	general designated for the commission and that person's staff, for
1260	1260	the state fiscal biennium beginning September 1, 2009, the same
1261	1261	level of administrative support the commission provided to the
1262	1262	office established under former Section 531.102 for the state
1263	1263	fiscal biennium beginning September 1, 2007. This subsection
1264	1264	expires January 1, 2012.
1265	1265	[Sections 422.055-422.100 reserved for expansion]
1266	1266	SUBCHAPTER C. INSPECTOR GENERAL AND PERSONNEL
1267	1267	Sec. 422.101. APPOINTMENT. (a) From a list of three or
1268	1268	more names submitted to the governor by the Legislative Budget
1269	1269	Board, the governor, with the advice and consent of the senate,
1270	1270	shall appoint an inspector general to serve as director of the
1271	1271	office.
1272	1272	(b) The appointment shall be made without regard to race,
1273	1273	color, disability, sex, religion, age, or national origin.
1274	1274	(c) In preparing the list and in making the appointment, the
1275	1275	Legislative Budget Board and the governor, respectively, shall
1276	1276	consider the person's knowledge of laws, experience in the
1277	1277	enforcement of law, honesty, integrity, education, training,
1278	1278	executive ability, capability for strong leadership, and
1279	1279	demonstrated ability in accounting, auditing, financial analysis,
1280	1280	law, management analysis, public administration, investigation,
1281	1281	criminal justice administration, or other closely related fields.
1282	1282	Sec. 422.102. TERM; VACANCY. (a) The inspector general
1283	1283	serves a two-year term that expires on February 1 of each
1284	1284	odd-numbered year. The inspector general may be reappointed to one
1285	1285	or more subsequent terms.
1286	1286	(b) The governor shall fill a vacancy in the office of
1287	1287	inspector general for the unexpired term in the same manner as the
1288	1288	inspector general is appointed under Section 422.101(a).
1289	1289	Sec. 422.103. ELIGIBILITY. (a) A person is not eligible
1290	1290	for appointment as inspector general or designation as a deputy
1291	1291	inspector general if the person or the person's spouse:
1292	1292	(1) is an officer or paid consultant of a business
1293	1293	entity or other organization that holds a license, certificate of
1294	1294	authority, or other authorization from an agency for which a deputy
1295	1295	inspector general is appointed or that receives funds from an
1296	1296	agency for which a deputy inspector general is appointed;
1297	1297	(2) owns or controls, directly or indirectly, more
1298	1298	than a 10 percent interest in a business entity or other
1299	1299	organization receiving funds from an agency for which a deputy
1300	1300	inspector general is appointed; or
1301	1301	(3) uses or receives a substantial amount of tangible
1302	1302	goods or funds from an agency for which a deputy inspector general
1303	1303	is appointed, other than compensation or reimbursement authorized
1304	1304	by law.
1305	1305	(b) A person is not eligible to serve as inspector general
1306	1306	or deputy inspector general if the person or the person's spouse is
1307	1307	required to register as a lobbyist under Chapter 305 because of the
1308	1308	person's or spouse's activities for compensation related to the
1309	1309	operation of an agency for which a deputy inspector general is
1310	1310	appointed.
1311	1311	(c) A person who is a former or current executive or manager
1312	1312	of an agency may not be appointed as the inspector general or a
1313	1313	deputy inspector general for that agency before the fifth
1314	1314	anniversary of the person's last day of service with the agency.
1315	1315	(d) The inspector general, a deputy inspector general, or an
1316	1316	employee of the office may not during the person's term of
1317	1317	appointment or employment:
1318	1318	(1) become a candidate for any elective office;
1319	1319	(2) hold another elected or appointed public office
1320	1320	except for an appointment on a governmental advisory board or study
1321	1321	commission or as otherwise expressly authorized by law;
1322	1322	(3) be actively involved in the affairs of any
1323	1323	political party or political organization; or
1324	1324	(4) actively participate in any campaign for any
1325	1325	elective office.
1326	1326	Sec. 422.104. CONFLICT OF INTEREST. (a) The inspector
1327	1327	general may not serve as an ex officio member on the governing body
1328	1328	of a governmental entity.
1329	1329	(b) The inspector general may not have a financial interest
1330	1330	in the transactions of the office or an agency.
1331	1331	(c) The inspector general and the deputy inspector general
1332	1332	designated for the commission may not have a financial interest in
1333	1333	the transactions of a provider.
1334	1334	Sec. 422.105. REMOVAL. The governor, with the advice and
1335	1335	consent of the senate, may remove the inspector general from office
1336	1336	as provided by Section 9, Article XV, Texas Constitution.
1337	1337	Sec. 422.106. DEPUTY INSPECTORS GENERAL. (a) Subject to
1338	1338	available appropriations and as necessary to carry out the powers
1339	1339	and duties of the inspector general under this chapter and other
1340	1340	laws granting jurisdiction to or applicable to the inspector
1341	1341	general, the inspector general may designate a person to serve as
1342	1342	the deputy inspector general for any agency or serve as a deputy
1343	1343	inspector general for more than one agency.
1344	1344	(b) The inspector general shall designate persons to serve
1345	1345	as the deputy inspectors general for each of the following
1346	1346	agencies:
1347	1347	(1) the Health and Human Services Commission;
1348	1348	(2) the Texas Youth Commission;
1349	1349	(3) the Texas Department of Criminal Justice;
1350	1350	(4) the Texas Education Agency; and
1351	1351	(5) the Texas Department of Transportation.
1352	1352	(c) A deputy inspector general is an at-will employee and
1353	1353	may be discharged by the inspector general without a hearing.
1354	1354	(d) A deputy inspector general shall report to and perform
1355	1355	duties as directed by the inspector general.
1356	1356	(e) Each agency to which a deputy inspector general is
1357	1357	appointed shall provide to the agency's designated deputy inspector
1358	1358	general facilities and support services, including suitable office
1359	1359	space, furniture, computer and communications equipment,
1360	1360	administrative support, and salary and benefits as provided by the
1361	1361	General Appropriations Act.
1362	1362	Sec. 422.107. PEACE OFFICERS. (a) The office may employ
1363	1363	and commission peace officers to assist the inspector general in
1364	1364	carrying out the duties of the office relating to detection,
1365	1365	investigation, and prevention of criminal wrongdoing, malfeasance,
1366	1366	misfeasance, or fraud, waste, and abuse in programs at an agency or
1367	1367	in programs receiving state or federal funds that are implemented,
1368	1368	administered, or overseen by or for an agency.
1369	1369	(b) A commissioned peace officer or otherwise designated
1370	1370	law enforcement officer employed by the office is not entitled to
1371	1371	supplemental benefits from the law enforcement and custodial
1372	1372	officer supplemental retirement fund unless the officer transfers
1373	1373	from a position, without a break in service, that qualifies for
1374	1374	supplemental retirement benefits from the fund.
1375	1375	Sec. 422.108. IN-HOUSE GENERAL COUNSEL. The inspector
1376	1376	general shall employ an in-house general counsel. The general
1377	1377	counsel must:
1378	1378	(1) be an attorney licensed to practice law in this
1379	1379	state;
1380	1380	(2) be in good standing with the State Bar of Texas;
1381	1381	and
1382	1382	(3) have at least five years of continuing experience
1383	1383	in advising senior executive management in the public or private
1384	1384	sector on contracts and contract management.
1385	1385	Sec. 422.109. EXPERTS. Subject to the availability of
1386	1386	funds, the inspector general and deputy inspectors general may
1387	1387	contract with certified public accountants, qualified management
1388	1388	consultants, or other professional experts as necessary to
1389	1389	independently perform the functions of the office.
1390	1390	Sec. 422.110. EMPLOYEES; TRAINING. (a) The inspector
1391	1391	general may appoint, employ, promote, and remove personnel as the
1392	1392	inspector general considers necessary for the efficient and
1393	1393	effective administration of the office.
1394	1394	(b) The inspector general shall train office personnel to
1395	1395	pursue, efficiently and as necessary, fraud, waste, and abuse cases
1396	1396	in programs at an agency or in other state or federally funded
1397	1397	programs implemented, administered, or overseen by or for the
1398	1398	agency.
1399	1399	Sec. 422.111. ASSISTANCE BY AGENCY EMPLOYEES. (a) The
1400	1400	inspector general may require employees of an agency to provide
1401	1401	information, resources, or other assistance to the office as the
1402	1402	inspector general considers necessary to fulfill the duties and
1403	1403	responsibilities imposed on the office under this chapter and other
1404	1404	law in connection with the investigation of fraud, waste, and abuse
1405	1405	in the provision of services for programs at an agency or in state
1406	1406	or federally funded programs implemented, administered, or
1407	1407	overseen by or for the agency.
1408	1408	(b) The inspector general or the deputy inspector general
1409	1409	for the commission may also require employees of any health and
1410	1410	human services agency to provide assistance under Subsection (a).
1411	1411	Sec. 422.112. MERIT SYSTEM. (a) The office may establish a
1412	1412	merit system for its employees.
1413	1413	(b) The merit system may be maintained in conjunction with
1414	1414	other agencies that are required by federal law to operate under a
1415	1415	merit system.
1416	1416	[Sections 422.113-422.150 reserved for expansion]
1417	1417	SUBCHAPTER D. GENERAL POWERS AND DUTIES
1418	1418	Sec. 422.151. GENERAL RESPONSIBILITIES. (a) The office is
1419	1419	responsible for:
1420	1420	(1) the investigation of any matter pertaining to or
1421	1421	involving an agency that receives state or federal funds; and
1422	1422	(2) the investigation, prevention, and detection of
1423	1423	criminal misconduct and wrongdoing and of fraud, waste, and abuse,
1424	1424	as defined in applicable state and federal law, in the provision or
1425	1425	funding of services by or for an agency or under a program
1426	1426	implemented, administered, or overseen by or for the agency.
1427	1427	(b) The inspector general shall set clear objectives,
1428	1428	priorities, and performance standards for the office that
1429	1429	emphasize:
1430	1430	(1) coordinating investigative efforts to
1431	1431	aggressively recover money;
1432	1432	(2) allocating resources to cases that have the
1433	1433	strongest supportive evidence and the greatest potential for
1434	1434	recovery of money; and
1435	1435	(3) maximizing opportunities for referral of cases to
1436	1436	the appropriate authorities.
1437	1437	(c) The inspector general shall investigate allegations of
1438	1438	fraud, waste, abuse, misconduct, nonfeasance, misfeasance, and
1439	1439	malfeasance, and violations of this chapter or other law.
1440	1440	(d) The office may:
1441	1441	(1) conduct criminal, civil, and administrative
1442	1442	investigations and initiate reviews of an agency as considered
1443	1443	appropriate by the inspector general; and
1444	1444	(2) receive and investigate complaints from any source
1445	1445	on its own initiative.
1446	1446	(e) The inspector general shall perform all other duties and
1447	1447	exercise all other powers granted to the inspector general's office
1448	1448	by this chapter or another law.
1449	1449	Sec. 422.152. GENERAL POWERS. The office has all the powers
1450	1450	necessary or appropriate to carry out its responsibilities and
1451	1451	functions under this chapter and other law. In addition to
1452	1452	performing functions and duties otherwise provided by law, the
1453	1453	office may:
1454	1454	(1) audit the use and effectiveness of state or
1455	1455	federal funds, including contract and grant funds, administered by
1456	1456	a person or an agency;
1457	1457	(2) conduct reviews, investigations, and inspections
1458	1458	relating to the funds described by Subdivision (1);
1459	1459	(3) recommend policies promoting economical and
1460	1460	efficient administration of the funds described by Subdivision (1)
1461	1461	and the prevention and detection of fraud, waste, and abuse in
1462	1462	administration of those funds; and
1463	1463	(4) conduct internal affairs investigations in
1464	1464	instances of fraud, waste, and abuse and in instances of misconduct
1465	1465	by employees, contractors, subcontractors, and vendors.
1466	1466	Sec. 422.153. RULEMAKING BY INSPECTOR GENERAL. (a)
1467	1467	Notwithstanding Section 531.0055(e) and any other law, the
1468	1468	inspector general shall adopt the rules necessary to administer the
1469	1469	functions of the office, including rules to address the imposition
1470	1470	of sanctions and penalties for violations and due process
1471	1471	requirements for imposing sanctions and penalties.
1472	1472	(b) A rule, standard, or form adopted by an agency that is
1473	1473	necessary to accomplish the duties of the office is considered to
1474	1474	also be a rule, standard, or form of the office and remains in
1475	1475	effect as a rule, standard, or form of the office until changed by
1476	1476	the inspector general.
1477	1477	(c) The rules must include standards for the office that
1478	1478	emphasize:
1479	1479	(1) coordinating investigative efforts to
1480	1480	aggressively recover money;
1481	1481	(2) allocating resources to cases that have the
1482	1482	strongest supportive evidence and the greatest potential for
1483	1483	recovery of money; and
1484	1484	(3) maximizing opportunities for referral of cases to
1485	1485	the appropriate authorities.
1486	1486	Sec. 422.154. STATE AUDITOR AUDITS, INVESTIGATIONS, AND
1487	1487	ACCESS TO INFORMATION NOT IMPAIRED. This subchapter or other law
1488	1488	related to the operation of the inspector general does not:
1489	1489	(1) take precedence over the authority of the state
1490	1490	auditor to conduct audits under Chapter 321 or other law; or
1491	1491	(2) prohibit the state auditor from conducting an
1492	1492	audit, investigation, or other review or from having full and
1493	1493	complete access to all records and other information, including
1494	1494	witnesses and electronic data, that the state auditor considers
1495	1495	necessary for the audit, investigation, or other review.
1496	1496	Sec. 422.155. PUBLIC PAMPHLET. (a) The office shall
1497	1497	provide information of public interest in the form of a pamphlet
1498	1498	that describes:
1499	1499	(1) the functions of the office, including the
1500	1500	functions of the inspector general;
1501	1501	(2) the matters or issues that may be subject to an
1502	1502	investigation or review performed by the office; and
1503	1503	(3) the manner in which a person may report an
1504	1504	allegation of fraud, abuse, or criminal wrongdoing to the office.
1505	1505	(b) The office shall make the information described by
1506	1506	Subsection (a) available to state officers and employees and to the
1507	1507	public.
1508	1508	Sec. 422.156. INTERNET WEBSITE. (a) The office shall
1509	1509	maintain an Internet website accessible to the public.
1510	1510	(b) The office shall post in a conspicuous place on the
1511	1511	office's Internet website the public interest pamphlet prepared
1512	1512	under Section 422.155.
1513	1513	(c) The office shall ensure that the office's Internet
1514	1514	website allows a person to report to the office an allegation of
1515	1515	fraud, abuse, or criminal wrongdoing related to an agency. A report
1516	1516	submitted through the office's Internet website, in person, or
1517	1517	through another means of communication may be anonymous.
1518	1518	Sec. 422.157. SEAL. The seal of the office shall be a
1519	1519	five-pointed star in the center with the words "Office of Inspector
1520	1520	General, State of Texas" engraved around the margin. The seal shall
1521	1521	be used to authenticate official documents issued by the office.
1522	1522	Sec. 422.158. EXECUTIVE ORDERS. (a) The governor may issue
1523	1523	executive orders directing agencies to implement recommendations
1524	1524	issued by the office for corrective or remedial actions promoting
1525	1525	the economical and efficient administration of money and the
1526	1526	detection of fraud.
1527	1527	(b) The governor shall submit to the lieutenant governor,
1528	1528	the speaker of the house of representatives, the state auditor, and
1529	1529	the comptroller a report of the executive orders issued under this
1530	1530	chapter and the compliance by agencies with those orders.
1531	1531	Sec. 422.159. DEFENSE BY ATTORNEY GENERAL. The attorney
1532	1532	general shall defend any action brought against the inspector
1533	1533	general, a deputy inspector general, or an employee or officer of
1534	1534	the office as a result of that person's official act or omission,
1535	1535	whether or not the person has terminated service with the office at
1536	1536	the time the action is instituted.
1537	1537	Sec. 422.160. INTERAGENCY COORDINATION. (a) The office may
1538	1538	develop and implement written procedures for coordinating reviews
1539	1539	of suspected fraud, waste, or abuse, as those terms are defined by
1540	1540	state or federal law, or other violations of state or federal law
1541	1541	under programs at an agency for which a deputy inspector general is
1542	1542	appointed or in programs at any agency receiving state or federal
1543	1543	funds that are implemented, administered, or overseen by the
1544	1544	agency.
1545	1545	(b) An exchange of any information under this section
1546	1546	between the office and appropriate authorities does not subject the
1547	1547	exchange of the information or the information to disclosure under
1548	1548	Chapter 552.
1549	1549	Sec. 422.161. INFORMATION AND TECHNOLOGY. The office may
1550	1550	obtain information or technology necessary to enable the office to
1551	1551	meet its responsibilities under this chapter or other law.
1552	1552	[Sections 422.162-422.200 reserved for expansion]
1553	1553	SUBCHAPTER E. REVIEWS, INVESTIGATIONS, AND AUDITS
1554	1554	Sec. 422.201. REVIEW, INVESTIGATION, AND AUDIT AUTHORITY.
1555	1555	(a) The inspector general may evaluate any activity or operation
1556	1556	of:
1557	1557	(1) an agency;
1558	1558	(2) a provider, in connection with an activity listed
1559	1559	in Section 422.002(9) or in connection with the provider's
1560	1560	relationship with the commission or a health and human services
1561	1561	agency as defined by Section 531.001; or
1562	1562	(3) a person in this state in relation to the
1563	1563	investigation, detection, or prevention of fraud, waste, abuse, or
1564	1564	employee misconduct in a program at an agency or in a state or
1565	1565	federally funded program implemented, administered, or overseen by
1566	1566	or for the agency.
1567	1567	(b) A review may include an investigation or other inquiry
1568	1568	into a specific act or allegation of, or a specific financial
1569	1569	transaction or practice that may involve, impropriety,
1570	1570	malfeasance, or nonfeasance in the obligation, spending, receipt,
1571	1571	or other use of state or federal money.
1572	1572	(c) The office shall conduct reviews and inspections to
1573	1573	protect the public and detect and prevent fraud, waste, and abuse in
1574	1574	the provision or funding of services or programs by or for an
1575	1575	agency.
1576	1576	(d) An agency or the governing body or governing officer of
1577	1577	an agency may not impair or prohibit the inspector general from
1578	1578	initiating or completing a review.
1579	1579	(e) With respect to an agency, the inspector general may
1580	1580	audit and review the use and effectiveness of state or federal
1581	1581	funds, including contract and grant funds, administered by a person
1582	1582	or agency receiving the funds in connection with an agency or state
1583	1583	or federally funded program implemented, administered, or overseen
1584	1584	by or for the agency.
1585	1585	Sec. 422.202. CLAIMS CRITERIA FOR INVESTIGATIONS. The
1586	1586	office by rule shall set specific claims criteria that, when met,
1587	1587	require the office to begin an investigation.
1588	1588	Sec. 422.203. INITIATION OF REVIEW. The inspector general
1589	1589	may initiate a review:
1590	1590	(1) on the inspector general's own initiative;
1591	1591	(2) at the request of an agency or the governing body
1592	1592	or governing officer of the agency; or
1593	1593	(3) based on a complaint from any source concerning a
1594	1594	matter described by Section 422.201.
1595	1595	Sec. 422.204. ACCESS TO INFORMATION. (a) To further a
1596	1596	review conducted by the office, the inspector general or a deputy
1597	1597	inspector general is entitled to access all books, records,
1598	1598	accounts, documents, reports, vouchers, databases, systems, or
1599	1599	other information, including confidential information, electronic
1600	1600	data, and internal records relevant to the functions of the office
1601	1601	that are maintained by or for a person, agency, or provider, if
1602	1602	applicable, in connection with an agency or a state or federally
1603	1603	funded program implemented, administered, or overseen by or for the
1604	1604	agency. The inspector general's authority under this subsection
1605	1605	supersedes any claim of privilege.
1606	1606	(b) The inspector general or deputy inspector general may
1607	1607	not access data or other information the release of which is
1608	1608	restricted under federal law unless the appropriate federal agency
1609	1609	approves the release to the office or its agent.
1610	1610	Sec. 422.205. COOPERATION REQUIRED. To further a review
1611	1611	conducted by the inspector general's office, the inspector general
1612	1612	or deputy inspector general may require medical or other
1613	1613	professional assistance from an agency or an auditor, accountant,
1614	1614	or other employee of the agency.
1615	1615	Sec. 422.206. EMPLOYEE REPORTS. The inspector general may
1616	1616	require employees at an agency to report to the office information
1617	1617	regarding fraud, waste, misuse or abuse of funds or resources,
1618	1618	corruption, or illegal acts.
1619	1619	Sec. 422.207. SUBPOENAS. (a) The inspector general may
1620	1620	issue a subpoena to compel the attendance of a relevant witness at a
1621	1621	hearing or deposition under this chapter or to compel the
1622	1622	production, for inspection or copying, of books, papers, records,
1623	1623	documents, or other relevant materials, including electronic data,
1624	1624	in connection with a review, hearing, or deposition conducted under
1625	1625	this chapter. The inspector general may issue a subpoena for the
1626	1626	records of any person receiving any funds from an agency under a
1627	1627	contract for the delivery of goods or services to this state.
1628	1628	(b) The inspector general may delegate the authority to
1629	1629	issue subpoenas to a deputy inspector general.
1630	1630	(c) A subpoena may be served personally or by certified
1631	1631	mail. If a person fails to comply with a subpoena, the inspector
1632	1632	general, acting through the attorney general, may file suit to
1633	1633	enforce the subpoena in a district court in this state.
1634	1634	(d) On finding that good cause exists for issuing the
1635	1635	subpoena, the court shall order the person to comply with the
1636	1636	subpoena. The court may hold in contempt a person who fails to obey
1637	1637	the court order.
1638	1638	(e) The reimbursement of the expenses of a witness whose
1639	1639	attendance is compelled under this section is governed by Section
1640	1640	2001.103.
1641	1641	(f) Nothing in this section limits or alters a person's
1642	1642	rights under state or federal law.
1643	1643	Sec. 422.208. INTERNAL AUDITOR. (a) In this section,
1644	1644	"internal auditor" means a person appointed under Section 2102.006.
1645	1645	(b) The internal auditor for an agency shall provide the
1646	1646	inspector general with a copy of the agency's internal audit plan
1647	1647	to:
1648	1648	(1) assist in the coordination of efforts between the
1649	1649	inspector general and the internal auditor; and
1650	1650	(2) limit duplication of effort regarding reviews by
1651	1651	the inspector general and internal auditor.
1652	1652	(c) The internal auditor shall provide to the inspector
1653	1653	general all final audit reports concerning audits of any:
1654	1654	(1) part or division of the agency;
1655	1655	(2) contract, procurement, or grant; and
1656	1656	(3) program conducted by the agency.
1657	1657	Sec. 422.209. REFERRAL OF CRIMINAL, CIVIL, AND
1658	1658	ADMINISTRATIVE MATTERS. (a) The inspector general may provide
1659	1659	information and evidence relating to criminal acts to the state
1660	1660	auditor's office and appropriate law enforcement officials.
1661	1661	(b) The inspector general shall refer matters for further
1662	1662	criminal action in the same manner as the state auditor refers
1663	1663	criminal matters under Chapter 321.
1664	1664	(c) The inspector general shall refer matters for further
1665	1665	civil and administrative action in the same manner as the state
1666	1666	auditor refers civil and administrative matters under Chapter 321.
1667	1667	(d) The office may assist appropriate authorities with
1668	1668	their administrative, civil, or criminal investigations if the
1669	1669	assistance is requested by the appropriate authorities.
1670	1670	(e) An appropriate authority that decides not to
1671	1671	investigate or prosecute a complaint alleging criminal conduct
1672	1672	referred to that authority by the inspector general shall notify
1673	1673	the inspector general of that decision.
1674	1674	Sec. 422.210. COOPERATION AND COORDINATION WITH STATE
1675	1675	AUDITOR. (a) The state auditor may, on request of the inspector
1676	1676	general, provide appropriate information or other assistance to the
1677	1677	inspector general or office, as determined by the state auditor.
1678	1678	(b) The inspector general may meet with the state auditor's
1679	1679	office to coordinate a review conducted under this chapter, share
1680	1680	information, or schedule work plans.
1681	1681	(c) The state auditor is entitled to access all information
1682	1682	maintained by the inspector general, including vouchers,
1683	1683	electronic data, internal records, and information obtained under
1684	1684	Section 422.204 or subject to Section 422.253.
1685	1685	(d) Any information obtained or provided by the state
1686	1686	auditor under this section is confidential and not subject to
1687	1687	disclosure under Chapter 552.
1688	1688	Sec. 422.211. PREVENTION. (a) The inspector general may
1689	1689	recommend to an agency or the presiding officer of the agency
1690	1690	policies on:
1691	1691	(1) promoting economical and efficient administration
1692	1692	of state or federal funds administered by an individual or entity
1693	1693	that received the funds from an agency; and
1694	1694	(2) preventing and detecting fraud, waste, and abuse
1695	1695	in the administration of those funds.
1696	1696	(b) The inspector general may provide training or other
1697	1697	education regarding the prevention of fraud, waste, and abuse to
1698	1698	employees of an agency. The training or education provided must be
1699	1699	approved by the presiding officer of the agency.
1700	1700	Sec. 422.212. AWARD FOR REPORTING FRAUD, WASTE, ABUSE, OR
1701	1701	OVERCHARGES. (a) If the office determines that the report results
1702	1702	in the recovery of an administrative or civil penalty imposed by
1703	1703	law, the office may grant an award to an individual who reports:
1704	1704	(1) activity that constitutes fraud, waste, or abuse
1705	1705	of money related to any agency programs or in programs receiving
1706	1706	state or federal funds that are implemented, administered, or
1707	1707	overseen by the agency; or
1708	1708	(2) overcharges in a program described by Subdivision
1709	1709	(1).
1710	1710	(b) The office may not grant an award to an individual in
1711	1711	connection with a report if the office or attorney general had
1712	1712	independent knowledge of the activity reported by the individual.
1713	1713	(c) The office shall determine the amount of an award
1714	1714	granted under this section. The amount may not exceed five percent
1715	1715	of the amount of the administrative or civil penalty imposed by law
1716	1716	that resulted from the individual's report.
1717	1717	(d) In determining the amount of an award granted under this
1718	1718	section, the office:
1719	1719	(1) shall consider the importance of the report in
1720	1720	ensuring the fiscal integrity of the program; and
1721	1721	(2) may consider whether the individual participated
1722	1722	in the reported fraud, waste, abuse, or overcharge.
1723	1723	(e) A person who brings an action under Subchapter C,
1724	1724	Chapter 36, Human Resources Code, is not eligible for an award under
1725	1725	this section.
1726	1726	Sec. 422.213. RULEMAKING BY PRESIDING OFFICER OF AGENCY.
1727	1727	An agency may adopt rules governing the agency's response to
1728	1728	reports and referrals from the inspector general on issues
1729	1729	identified by the inspector general related to the agency or a
1730	1730	contractor of the agency.
1731	1731	Sec. 422.214. ALLEGATIONS OF MISCONDUCT AGAINST PRESIDING
1732	1732	OFFICER. If a review by the inspector general involves allegations
1733	1733	that a presiding officer of the governing body of an agency, or if
1734	1734	applicable the single state officer who governs the agency, has
1735	1735	engaged in misconduct, the inspector general shall report to the
1736	1736	governor during the review until the report is completed or the
1737	1737	review is closed without a finding.
1738	1738	Sec. 422.215. RIGHT TO DECLINE INVESTIGATION. The
1739	1739	inspector general may decline to investigate a complaint that the
1740	1740	inspector general determines:
1741	1741	(1) is trivial, frivolous, or vexatious;
1742	1742	(2) was not made in good faith;
1743	1743	(3) is based on a situation for which too much time has
1744	1744	passed to justify an investigation;
1745	1745	(4) may not be adequately investigated with the
1746	1746	resources available, considering established priorities; or
1747	1747	(5) addresses a matter that is not within the
1748	1748	inspector general's investigatory authority.
1749	1749	[Sections 422.216-422.250 reserved for expansion]
1750	1750	SUBCHAPTER F. REPORTS
1751	1751	Sec. 422.251. REPORTING OFFICE FINDINGS. Unless the
1752	1752	findings would compromise an ongoing investigation by the attorney
1753	1753	general or law enforcement, the inspector general shall report the
1754	1754	findings of the office in connection with a review conducted under
1755	1755	this chapter to:
1756	1756	(1) the presiding officer of the governing body of the
1757	1757	agency, or if applicable the single state officer who governs the
1758	1758	agency;
1759	1759	(2) the governor;
1760	1760	(3) the lieutenant governor;
1761	1761	(4) the speaker of the house of representatives;
1762	1762	(5) the comptroller;
1763	1763	(6) the state auditor; and
1764	1764	(7) the attorney general.
1765	1765	Sec. 422.252. FLAGRANT VIOLATIONS. The inspector general
1766	1766	may report to the presiding officer of the governing body of the
1767	1767	agency associated with the review, or if applicable the single
1768	1768	state officer who governs the agency, the governor, and the state
1769	1769	auditor a particularly serious or flagrant problem relating to the
1770	1770	administration of a program, operation of the agency, or
1771	1771	interference with an inspector general review.
1772	1772	Sec. 422.253. INFORMATION CONFIDENTIAL. (a) Except as
1773	1773	provided by this chapter, all information and material compiled by
1774	1774	the inspector general during a review under this chapter is:
1775	1775	(1) confidential and not subject to disclosure under
1776	1776	Chapter 552; and
1777	1777	(2) not subject to disclosure, discovery, subpoena, or
1778	1778	other means of legal compulsion for release to anyone other than the
1779	1779	state auditor's office, the agency that is the subject of a review,
1780	1780	or the office or its agents involved in the review related to that
1781	1781	information or material.
1782	1782	(b) As the inspector general determines appropriate,
1783	1783	information relating to a review may be disclosed to:
1784	1784	(1) a law enforcement agency;
1785	1785	(2) the attorney general;
1786	1786	(3) the state auditor; or
1787	1787	(4) the agency that is the subject of a review.
1788	1788	(c) A person that receives information under Subsection (b)
1789	1789	may not disclose the information except to the extent that
1790	1790	disclosure is consistent with the authorized purpose for which the
1791	1791	person received the information.
1792	1792	Sec. 422.254. DRAFT OF FINAL REVIEW REPORT; AGENCY
1793	1793	RESPONSE. (a) Except in cases in which the office has determined
1794	1794	that potential fraud, waste, or abuse exists, the office shall
1795	1795	provide a draft of the final review report of any investigation,
1796	1796	audit, or review of the operations of an agency to the presiding
1797	1797	officer of the governing body of the agency, or if applicable to the
1798	1798	single state officer who governs the agency, before publishing the
1799	1799	office's final review report.
1800	1800	(b) The agency may provide a response to the office's draft
1801	1801	report in the manner prescribed by the office not later than the
1802	1802	10th day after the date the draft report is received by the agency.
1803	1803	The inspector general by rule shall specify the format of and
1804	1804	requirements for the agency response.
1805	1805	(c) Notwithstanding Subsection (a), the office may not
1806	1806	provide a draft report to the presiding officer of the governing
1807	1807	body of the agency, or if applicable to the single state officer who
1808	1808	governs the agency, if in the inspector general's opinion providing
1809	1809	the draft report could negatively affect any anticipated civil or
1810	1810	criminal proceedings.
1811	1811	(d) The office may include any portion of the agency's
1812	1812	response in the office's final report.
1813	1813	Sec. 422.255. FINAL REVIEW REPORTS; AGENCY RESPONSE. (a)
1814	1814	The inspector general shall prepare a final report for each review
1815	1815	conducted under this chapter. The final report must include:
1816	1816	(1) a summary of the activities performed by the
1817	1817	inspector general in conducting the review;
1818	1818	(2) a determination of whether wrongdoing was found;
1819	1819	and
1820	1820	(3) a description of any findings of wrongdoing.
1821	1821	(b) The inspector general's final review reports are
1822	1822	subject to disclosure under Chapter 552.
1823	1823	(c) All working papers and other documents related to
1824	1824	compiling the final review reports remain confidential and are not
1825	1825	subject to disclosure under Chapter 552.
1826	1826	(d) Not later than the 60th day after the date the office
1827	1827	issues a final report that identifies deficiencies or
1828	1828	inefficiencies in, or recommends corrective measures in the
1829	1829	operations of, an agency, the agency shall file a response that
1830	1830	includes:
1831	1831	(1) an implementation plan and timeline for
1832	1832	implementing corrective measures; or
1833	1833	(2) the agency's rationale for declining to implement
1834	1834	corrective measures for the identified deficiencies or
1835	1835	inefficiencies or the office's recommended corrective measures, as
1836	1836	applicable.
1837	1837	Sec. 422.256. COSTS. (a) The inspector general shall
1838	1838	maintain information regarding the cost of reviews.
1839	1839	(b) The inspector general may cooperate with appropriate
1840	1840	administrative and prosecutorial agencies, including the attorney
1841	1841	general, in recovering costs incurred under this chapter from
1842	1842	nongovernmental entities, including contractors or individuals
1843	1843	involved in:
1844	1844	(1) violations of applicable state or federal rules or
1845	1845	statutes;
1846	1846	(2) abusive or wilful misconduct; or
1847	1847	(3) violations of a provider contract or program
1848	1848	policy.
1849	1849	Sec. 422.257. SEMIANNUAL REPORT; LEGISLATIVE REPORT. (a)
1850	1850	The office shall prepare and submit a semiannual report to the
1851	1851	governor, the lieutenant governor, the speaker of the house of
1852	1852	representatives, the state auditor, the comptroller, and each
1853	1853	member of the legislature concerning:
1854	1854	(1) any completed final review; and
1855	1855	(2) the activities of the office and the attorney
1856	1856	general in detecting and preventing fraud, waste, and abuse under
1857	1857	any agency programs or in programs receiving state or federal funds
1858	1858	that are implemented, administered, or overseen by an agency that
1859	1859	is reviewed by the office under this chapter.
1860	1860	(b) Not later than December 1 of each even-numbered year,
1861	1861	the office shall issue to each member of the legislature a report
1862	1862	that contains the information required under Subsection (a) for the
1863	1863	two years immediately preceding the legislative session. The
1864	1864	office shall make the report available to the public.
1865	1865	[Sections 422.258-422.300 reserved for expansion]
1866	1866	SUBCHAPTER G. HEALTH AND HUMAN SERVICES POWERS AND DUTIES
1867	1867	Sec. 422.301. GENERAL HEALTH AND HUMAN SERVICES POWERS.
1868	1868	The office has all the powers necessary or appropriate to carry out
1869	1869	its responsibilities and functions under this chapter and other law
1870	1870	in relation to health and human services matters. In addition to
1871	1871	performing functions and duties otherwise provided by law, the
1872	1872	office may provide for coordination between the office and special
1873	1873	investigative units formed by managed care organizations under
1874	1874	Section 531.113 or entities with which managed care organizations
1875	1875	contract under that section.
1876	1876	Sec. 422.302. HEALTH AND HUMAN SERVICES RESPONSIBILITIES.
1877	1877	The office is responsible for:
1878	1878	(1) the investigation of fraud, waste, and abuse in
1879	1879	the provision or funding of health or human services by this state;
1880	1880	(2) the enforcement of state law relating to the
1881	1881	provision of those services to protect the public; and
1882	1882	(3) the prevention and detection of crime relating to
1883	1883	the provision of those services.
1884	1884	Sec. 422.303. INTEGRITY REVIEW FOR MEDICAID PROGRAM. (a)
1885	1885	The deputy inspector general designated for the commission shall
1886	1886	conduct an integrity review to determine whether there is
1887	1887	sufficient basis to warrant a full investigation on receipt of any
1888	1888	complaint of fraud, waste, or abuse of funds in the state Medicaid
1889	1889	program from any source.
1890	1890	(b) An integrity review under this section must begin not
1891	1891	later than the 30th day after the date the office receives a
1892	1892	complaint or has reason to believe that Medicaid fraud, waste, or
1893	1893	abuse has occurred. An integrity review shall be completed not
1894	1894	later than the 90th day after the date the review began.
1895	1895	(c) If the findings of an integrity review give the office
1896	1896	reason to believe that an incident of fraud involving possible
1897	1897	criminal conduct has occurred in the state Medicaid program, the
1898	1898	office must take the following action, as appropriate, not later
1899	1899	than the 30th day after the completion of the integrity review:
1900	1900	(1) if a provider is suspected of fraud involving
1901	1901	criminal conduct, the office must refer the case under Section
1902	1902	422.209, provided that the criminal referral does not preclude the
1903	1903	office from continuing its investigation of the provider or
1904	1904	preclude the imposition of appropriate administrative or civil
1905	1905	sanctions; or
1906	1906	(2) if there is reason to believe that a recipient of
1907	1907	funds has defrauded the Medicaid program, the office may conduct a
1908	1908	full investigation of the suspected fraud.
1909	1909	Sec. 422.304. IMMEDIATE REFERRAL OF MEDICAID FRAUD. (a) At
1910	1910	the time the office learns or has reason to suspect that a health or
1911	1911	human services provider's records related to participation in the
1912	1912	state Medicaid program are being withheld, concealed, destroyed,
1913	1913	fabricated, or in any way falsified, the office shall immediately
1914	1914	refer the case as provided in Section 422.209.
1915	1915	(b) A criminal referral under Subsection (a) does not
1916	1916	preclude the office from continuing its investigation of a health
1917	1917	or human services provider or the imposition of appropriate
1918	1918	administrative or civil sanctions.
1919	1919	Sec. 422.305. HOLD ON CLAIM REIMBURSEMENT PAYMENT;
1920	1920	EXCLUSION FROM PROGRAMS. (a) In addition to other instances
1921	1921	authorized under state or federal law, the office shall impose
1922	1922	without prior notice a hold on payment of claims for reimbursement
1923	1923	submitted by a health or human services provider to compel
1924	1924	production of records related to participation in the state
1925	1925	Medicaid program or on request of the state's Medicaid fraud
1926	1926	control unit, as applicable.
1927	1927	(b) The office must notify the health or human services
1928	1928	provider of the hold on payment not later than the fifth working day
1929	1929	after the date the payment hold is imposed.
1930	1930	(c) The office shall, in consultation with the state's
1931	1931	Medicaid fraud control unit, establish guidelines under which holds
1932	1932	on payment or exclusions from a health and human services program:
1933	1933	(1) may permissively be imposed on a health or human
1934	1934	services provider; or
1935	1935	(2) shall automatically be imposed on a provider.
1936	1936	(d) A health or human services provider subject to a hold on
1937	1937	payment or excluded from a program under this section is entitled to
1938	1938	a hearing on the hold or exclusion. A hearing under this subsection
1939	1939	is a contested case hearing under Chapter 2001. The State Office of
1940	1940	Administrative Hearings shall conduct the hearing. After the
1941	1941	hearing, the office, subject to judicial review, shall make a final
1942	1942	determination. The commission, a health and human services agency,
1943	1943	and the attorney general are entitled to intervene as parties in the
1944	1944	contested case.
1945	1945	Sec. 422.306. REQUEST FOR EXPEDITED HEARING. (a) On timely
1946	1946	written request by a health or human services provider subject to a
1947	1947	hold on payment under Section 422.305, other than a hold requested
1948	1948	by the state's Medicaid fraud control unit, the office shall file a
1949	1949	request with the State Office of Administrative Hearings for an
1950	1950	expedited administrative hearing regarding the hold.
1951	1951	(b) The health or human services provider must request an
1952	1952	expedited hearing not later than the 10th day after the date the
1953	1953	provider receives notice from the office under Section 422.305(b).
1954	1954	Sec. 422.307. INFORMAL RESOLUTION. (a) The inspector
1955	1955	general shall adopt rules that allow a health or human services
1956	1956	provider subject to a hold on payment under Section 422.305, other
1957	1957	than a hold requested by the state's Medicaid fraud control unit, to
1958	1958	seek an informal resolution of the issues identified by the office
1959	1959	in the notice provided under that section.
1960	1960	(b) A health or human services provider that seeks an
1961	1961	informal resolution must do so not later than the 10th day after the
1962	1962	date the provider receives notice from the office under Section
1963	1963	422.305(b).
1964	1964	(c) A health or human services provider's decision to seek
1965	1965	an informal resolution does not extend the time by which the
1966	1966	provider must request an expedited administrative hearing under
1967	1967	Section 422.306.
1968	1968	(d) A hearing initiated under Section 422.305 shall be
1969	1969	stayed at the office's request until the informal resolution
1970	1970	process is completed.
1971	1971	[Sections 422.308-422.450 reserved for expansion]
1972	1972	SUBCHAPTER J. PENALTIES
1973	1973	Sec. 422.451. ADMINISTRATIVE OR CIVIL PENALTY; INJUNCTION.
1974	1974	(a) The office may request that the appropriate authorities obtain
1975	1975	an injunction to prevent a person from disposing of an asset
1976	1976	identified by the office as potentially subject to recovery by the
1977	1977	office due to the person's fraud, waste, or abuse.
1978	1978	(b) The office may act for an agency in assessing
1979	1979	administrative or civil penalties the agency is authorized to
1980	1980	assess under applicable law if:
1981	1981	(1) the inspector general is required to designate a
1982	1982	deputy inspector general for the agency under Section 422.106;
1983	1983	(2) the agency is a health and human services agency as
1984	1984	defined by Section 531.001; or
1985	1985	(3) the penalty is imposed in connection with fraud,
1986	1986	waste, or abuse in the use of state or federal funds.
1987	1987	(c) If the office imposes an administrative or civil penalty
1988	1988	under Subsection (b) for an agency:
1989	1989	(1) the agency may not impose an administrative or
1990	1990	civil penalty against the same person for the same violation; and
1991	1991	(2) the office shall impose the penalty under
1992	1992	applicable rules of the office, this chapter, and applicable laws
1993	1993	governing the imposition of a penalty by the agency.
1994	1994	SECTION 10.02. Section 20.038, Business & Commerce Code, is
1995	1995	amended to read as follows:
1996	1996	Sec. 20.038. EXEMPTION FROM SECURITY FREEZE. A security
1997	1997	freeze does not apply to a consumer report provided to:
1998	1998	(1) a state or local governmental entity, including a
1999	1999	law enforcement agency or court or private collection agency, if
2000	2000	the entity, agency, or court is acting under a court order, warrant,
2001	2001	subpoena, or administrative subpoena;
2002	2002	(2) a child support agency as defined by Section
2003	2003	101.004, Family Code, acting to investigate or collect child
2004	2004	support payments or acting under Title IV-D of the Social Security
2005	2005	Act (42 U.S.C. Section 651 et seq.);
2006	2006	(3) the office of inspector general [Health and Human
2007	2007	Services Commission] acting to investigate fraud, waste, or abuse
2008	2008	in state agencies under Chapter 422, Government Code, or other law
2009	2009	[under Section 531.102, Government Code];
2010	2010	(4) the comptroller acting to investigate or collect
2011	2011	delinquent sales or franchise taxes;
2012	2012	(5) a tax assessor-collector acting to investigate or
2013	2013	collect delinquent ad valorem taxes;
2014	2014	(6) a person for the purposes of prescreening as
2015	2015	provided by the Fair Credit Reporting Act (15 U.S.C. Section 1681 et
2016	2016	seq.), as amended;
2017	2017	(7) a person with whom the consumer has an account or
2018	2018	contract or to whom the consumer has issued a negotiable
2019	2019	instrument, or the person's subsidiary, affiliate, agent,
2020	2020	assignee, prospective assignee, or private collection agency, for
2021	2021	purposes related to that account, contract, or instrument;
2022	2022	(8) a subsidiary, affiliate, agent, assignee, or
2023	2023	prospective assignee of a person to whom access has been granted
2024	2024	under Section 20.037(b);
2025	2025	(9) a person who administers a credit file monitoring
2026	2026	subscription service to which the consumer has subscribed;
2027	2027	(10) a person for the purpose of providing a consumer
2028	2028	with a copy of the consumer's report on the consumer's request;
2029	2029	(11) a check service or fraud prevention service
2030	2030	company that issues consumer reports:
2031	2031	(A) to prevent or investigate fraud; or
2032	2032	(B) for purposes of approving or processing
2033	2033	negotiable instruments, electronic funds transfers, or similar
2034	2034	methods of payment;
2035	2035	(12) a deposit account information service company
2036	2036	that issues consumer reports related to account closures caused by
2037	2037	fraud, substantial overdrafts, automated teller machine abuses, or
2038	2038	similar negative information regarding a consumer to an inquiring
2039	2039	financial institution for use by the financial institution only in
2040	2040	reviewing a consumer request for a deposit account with that
2041	2041	institution; or
2042	2042	(13) a consumer reporting agency that:
2043	2043	(A) acts only to resell credit information by
2044	2044	assembling and merging information contained in a database of
2045	2045	another consumer reporting agency or multiple consumer reporting
2046	2046	agencies; and
2047	2047	(B) does not maintain a permanent database of
2048	2048	credit information from which new consumer reports are produced.
2049	2049	SECTION 10.03. Article 2.12, Code of Criminal Procedure, is
2050	2050	amended to read as follows:
2051	2051	Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace
2052	2052	officers:
2053	2053	(1) sheriffs, their deputies, and those reserve
2054	2054	deputies who hold a permanent peace officer license issued under
2055	2055	Chapter 1701, Occupations Code;
2056	2056	(2) constables, deputy constables, and those reserve
2057	2057	deputy constables who hold a permanent peace officer license issued
2058	2058	under Chapter 1701, Occupations Code;
2059	2059	(3) marshals or police officers of an incorporated
2060	2060	city, town, or village, and those reserve municipal police officers
2061	2061	who hold a permanent peace officer license issued under Chapter
2062	2062	1701, Occupations Code;
2063	2063	(4) rangers and officers commissioned by the Public
2064	2064	Safety Commission and the Director of the Department of Public
2065	2065	Safety;
2066	2066	(5) investigators of the district attorneys', criminal
2067	2067	district attorneys', and county attorneys' offices;
2068	2068	(6) law enforcement agents of the Texas Alcoholic
2069	2069	Beverage Commission;
2070	2070	(7) each member of an arson investigating unit
2071	2071	commissioned by a city, a county, or the state;
2072	2072	(8) officers commissioned under Section 37.081,
2073	2073	Education Code, or Subchapter E, Chapter 51, Education Code;
2074	2074	(9) officers commissioned by the General Services
2075	2075	Commission;
2076	2076	(10) law enforcement officers commissioned by the
2077	2077	Parks and Wildlife Commission;
2078	2078	(11) airport police officers commissioned by a city
2079	2079	with a population of more than 1.18 million that operates an airport
2080	2080	that serves commercial air carriers;
2081	2081	(12) airport security personnel commissioned as peace
2082	2082	officers by the governing body of any political subdivision of this
2083	2083	state, other than a city described by Subdivision (11), that
2084	2084	operates an airport that serves commercial air carriers;
2085	2085	(13) municipal park and recreational patrolmen and
2086	2086	security officers;
2087	2087	(14) security officers and investigators commissioned
2088	2088	as peace officers by the comptroller;
2089	2089	(15) officers commissioned by a water control and
2090	2090	improvement district under Section 49.216, Water Code;
2091	2091	(16) officers commissioned by a board of trustees
2092	2092	under Chapter 54, Transportation Code;
2093	2093	(17) investigators commissioned by the Texas Medical
2094	2094	Board;
2095	2095	(18) officers commissioned by the board of managers of
2096	2096	the Dallas County Hospital District, the Tarrant County Hospital
2097	2097	District, or the Bexar County Hospital District under Section
2098	2098	281.057, Health and Safety Code;
2099	2099	(19) county park rangers commissioned under
2100	2100	Subchapter E, Chapter 351, Local Government Code;
2101	2101	(20) investigators employed by the Texas Racing
2102	2102	Commission;
2103	2103	(21) officers commissioned under Chapter 554,
2104	2104	Occupations Code;
2105	2105	(22) officers commissioned by the governing body of a
2106	2106	metropolitan rapid transit authority under Section 451.108,
2107	2107	Transportation Code, or by a regional transportation authority
2108	2108	under Section 452.110, Transportation Code;
2109	2109	(23) investigators commissioned by the attorney
2110	2110	general under Section 402.009, Government Code;
2111	2111	(24) security officers and investigators commissioned
2112	2112	as peace officers under Chapter 466, Government Code;
2113	2113	(25) an officer employed by the Department of State
2114	2114	Health Services under Section 431.2471, Health and Safety Code;
2115	2115	(26) officers appointed by an appellate court under
2116	2116	Subchapter F, Chapter 53, Government Code;
2117	2117	(27) officers commissioned by the state fire marshal
2118	2118	under Chapter 417, Government Code;
2119	2119	(28) an investigator commissioned by the commissioner
2120	2120	of insurance under Section 701.104, Insurance Code;
2121	2121	(29) apprehension specialists [and inspectors
2122	2122	general] commissioned by the Texas Youth Commission as officers
2123	2123	under Section [Sections 61.0451 and] 61.0931, Human Resources Code;
2124	2124	(30) [officers appointed by the inspector general of
2125	2125	the Texas Department of Criminal Justice under Section 493.019,
2126	2126	Government Code;
2127	2127	[(31)] investigators commissioned by the Commission
2128	2128	on Law Enforcement Officer Standards and Education under Section
2129	2129	1701.160, Occupations Code;
2130	2130	(31) [(32)] commission investigators commissioned by
2131	2131	the Texas Private Security Board under Section 1702.061(f),
2132	2132	Occupations Code;
2133	2133	(32) [(33)] the fire marshal and any officers,
2134	2134	inspectors, or investigators commissioned by an emergency services
2135	2135	district under Chapter 775, Health and Safety Code;
2136	2136	(33) [(34)] officers commissioned by the State Board
2137	2137	of Dental Examiners under Section 254.013, Occupations Code,
2138	2138	subject to the limitations imposed by that section; [and]
2139	2139	(34) [(35)] investigators commissioned by the Texas
2140	2140	Juvenile Probation Commission as officers under Section 141.055,
2141	2141	Human Resources Code; and
2142	2142	(35) officers commissioned by the office of inspector
2143	2143	general established under Chapter 422, Government Code.
2144	2144	SECTION 10.04. The following sections of the Government
2145	2145	Code are repealed:
2146	2146	(1) Section 531.102;
2147	2147	(2) Section 531.1021; and
2148	2148	(3) Section 531.103.
2149	2149	SECTION 10.05. (a) The repeal by this Act of Section
2150	2150	531.102, Government Code, does not affect the validity of a
2151	2151	complaint, investigation, or other proceeding initiated under that
2152	2152	section before the effective date of this Act. A complaint,
2153	2153	investigation, or other proceeding initiated under that section is
2154	2154	continued in accordance with the changes in law made by this Act.
2155	2155	(b) The repeal by this Act of Section 531.1021, Government
2156	2156	Code, does not affect the validity of a subpoena issued under that
2157	2157	section before the effective date of this Act. A subpoena issued
2158	2158	under that section before the effective date of this Act is governed
2159	2159	by the law that existed when the subpoena was issued, and the former
2160	2160	law is continued in effect for that purpose.
2161	2161	SECTION 10.06. (a) As soon as practicable after the
2162	2162	effective date of this Act, the Legislative Budget Board shall
2163	2163	submit to the governor a list with the names of at least three
2164	2164	persons who may be appointed as inspector general for the office of
2165	2165	inspector general as required by Chapter 422, Government Code, as
2166	2166	added by this Act.
2167	2167	(b) As soon as practicable after the date the governor
2168	2168	receives the list under Subsection (a) of this section, the
2169	2169	governor shall appoint an inspector general for the office of
2170	2170	inspector general established under Chapter 422, Government Code,
2171	2171	as added by this Act, to a term expiring February 1, 2011.
2172	2172	(c) A person serving on the effective date of this Act as
2173	2173	inspector general for a state agency subject to Chapter 422,
2174	2174	Government Code, as added by this Act, shall serve as the deputy
2175	2175	inspector general designated for the agency under Chapter 422,
2176	2176	Government Code, as added by this Act, unless and until replaced by
2177	2177	the inspector general.
2178	2178	SECTION 10.07. A contract or proceeding primarily related
2179	2179	to a function transferred to the office of inspector general
2180	2180	established under this Act is transferred to the office. The
2181	2181	transfer does not affect the status of a proceeding or the validity
2182	2182	of a contract.
2183	2183	SECTION 10.08. (a) All personnel and assets currently
2184	2184	assigned to the inspector general of an agency subject to Chapter
2185	2185	422, Government Code, as added by this Act, shall be promptly
2186	2186	transferred to the office of inspector general established under
2187	2187	Chapter 422 along with any equipment, documents, and records
2188	2188	currently assigned to or used by the inspector general of that
2189	2189	agency. Inventory of personnel, equipment, documents, records, and
2190	2190	assets to be transferred under this section shall be accomplished
2191	2191	jointly by the transferring agency and the inspector general
2192	2192	serving under Chapter 422. All funds previously appropriated or
2193	2193	used, from any source, by the transferring agency in support of the
2194	2194	transferred functions, personnel, equipment, documents, records,
2195	2195	or assets shall also be contemporaneously transferred to the
2196	2196	office.
2197	2197	(b) For purposes of this section, "currently assigned"
2198	2198	means:
2199	2199	(1) all personnel and vacant full-time equivalent
2200	2200	positions assigned to or supporting a transferred function at any
2201	2201	time during the state fiscal biennium beginning September 1, 2007;
2202	2202	and
2203	2203	(2) all inventory and equipment assigned to a
2204	2204	transferred function or transferring personnel or that was in the
2205	2205	possession of transferring personnel on or at any time after
2206	2206	October 31, 2008.
2207	2207	(c) All state and federal funding, including funding for
2208	2208	overhead costs, support costs, and lease or colocation lease costs,
2209	2209	for the functions to be transferred to the office of inspector
2210	2210	general established under Chapter 422, Government Code, as added by
2211	2211	this Act, shall be reallocated to that office.
2212	2212	(d) For purposes of federal single state agency funding
2213	2213	requirements, any federal funds for an agency subject to Chapter
2214	2214	422, Government Code, as added by this Act, that may not be
2215	2215	appropriated directly to the office of inspector general shall be
2216	2216	transferred from the single state agency receiving the funds to the
2217	2217	office of inspector general established under Chapter 422 if the
2218	2218	funds are intended for a function performed by the office.
2219	2219	SECTION 10.09. On the effective date of this Act:
2220	2220	(1) all functions, activities, employees, rules,
2221	2221	forms, money, property, contracts, memorandums of understanding,
2222	2222	records, and obligations of a previously established office of
2223	2223	inspector general of an agency subject to Chapter 422, Government
2224	2224	Code, as added by this Act, become functions, activities,
2225	2225	employees, rules, forms, money, property, contracts, memorandums
2226	2226	of understanding, records, and obligations of the office of
2227	2227	inspector general established under Chapter 422, without a change
2228	2228	in status; and
2229	2229	(2) all money appropriated or budgeted for the
2230	2230	operations of a previously established office of inspector general
2231	2231	at an agency subject to Chapter 422, Government Code, as added by
2232	2232	this Act, including money for providing administrative support, is
2233	2233	considered appropriated for the use of the office of inspector
2234	2234	general established under Chapter 422.
2235	2235	SECTION 10.10. (a) Each agency subject to Chapter 422,
2236	2236	Government Code, as added by this Act, shall take all action
2237	2237	necessary to provide for the orderly transfer of the assets and
2238	2238	responsibilities of any previously established office of inspector
2239	2239	general for that agency to the office of inspector general
2240	2240	established under Chapter 422.
2241	2241	(b) A rule or form adopted by a previously established
2242	2242	office of inspector general of an agency subject to Chapter 422,
2243	2243	Government Code, as added by this Act, is a rule or form of the
2244	2244	office of inspector general established under Chapter 422 and
2245	2245	remains in effect until changed by the office of inspector general.
2246	2246	(c) A reference in law or administrative rule to a
2247	2247	previously established office of inspector general of an agency
2248	2248	subject to Chapter 422, Government Code, as added by this Act, means
2249	2249	the office of inspector general established under Chapter 422.
2250	2250	SECTION 10.11. If before implementing any provision of this
2251	2251	Act a state agency determines that a waiver or authorization from a
2252	2252	federal agency is necessary for implementation of that provision,
2253	2253	the agency affected by the provision shall request the waiver or
2254	2254	authorization and may delay implementing that provision until the
2255	2255	waiver or authorization is granted.
2256	2256	ARTICLE 11. TRANSITION PROVISIONS AND EFFECTIVE DATES
2257	2257	SECTION 11.01. (a) On the effective date of this Act the
2258	2258	state auditor's office is renamed the State Accountability Office.
2259	2259	(b) The validity of an action taken by the state auditor,
2260	2260	the state auditor's office, or the legislative audit committee is
2261	2261	not affected by the change in names of the state auditor's office
2262	2262	and the legislative audit committee.
2263	2263	(c) On the effective date of this Act:
2264	2264	(1) all functions, activities, employees, rules,
2265	2265	forms, money, property, contracts, records, and obligations of the
2266	2266	state auditor's office become functions, activities, employees,
2267	2267	rules, forms, money, property, contracts, records, and obligations
2268	2268	of the State Accountability Office without a change in status;
2269	2269	(2) a reference in law to the state auditor's office
2270	2270	means the State Accountability Office; and
2271	2271	(3) all funds appropriated to the state auditor's
2272	2272	office, including funds for providing administrative support for
2273	2273	the state auditor's office, such as funds to pay the salary and
2274	2274	benefits of employees who provide administrative support, are
2275	2275	transferred to the State Accountability Office.
2276	2276	SECTION 11.02. (a) Not later than March 1, 2010, the State
2277	2277	Accountability Office shall develop the standard contract
2278	2278	provision required by Section 321.0122, Government Code, as added
2279	2279	by this Act.
2280	2280	(b) A department is not required to comply with Section
2281	2281	321.0122, Government Code, as added by this Act, until September 1,
2282	2282	2010.
2283	2283	SECTION 11.03. A governmental entity is not required to
2284	2284	submit a report under Section 331.007, Government Code, as added by
2285	2285	this Act, until the end of the first full state fiscal quarter after
2286	2286	the effective date of this Act.
2287	2287	SECTION 11.04. (a) In this section, "performance review"
2288	2288	means a function performed by the Legislative Budget Board before
2289	2289	the effective date of this Act under Section 322.015, 322.016,
2290	2290	322.0165, 322.017, or 322.018, Government Code.
2291	2291	(b) On the effective date of this Act, the following are
2292	2292	transferred from the Legislative Budget Board to the State
2293	2293	Accountability Office:
2294	2294	(1) all employees whose primary duties involved
2295	2295	performing or supporting the performance of performance reviews;
2296	2296	(2) all records and equipment primarily used by the
2297	2297	board in connection with performance reviews; and
2298	2298	(3) all appropriations for the state fiscal biennium
2299	2299	beginning September 1, 2009, made to or budgeted by the board
2300	2300	specifically for performance reviews.
2301	2301	(c) If the Legislative Budget Board does not receive
2302	2302	appropriations specifically designated for performance review
2303	2303	purposes for the state fiscal biennium beginning September 1, 2009,
2304	2304	and has not specifically budgeted amounts for performance review
2305	2305	purposes for that biennium, an amount equal to the amount of
2306	2306	appropriations specifically designated for or budgeted by the
2307	2307	Legislative Budget Board for performance review purposes for the
2308	2308	state fiscal biennium beginning September 1, 2007, is transferred
2309	2309	from appropriations made to the Legislative Budget Board for the
2310	2310	state fiscal biennium beginning September 1, 2009, to the State
2311	2311	Accountability Office for that biennium.
2312	2312	SECTION 11.05. In the event of a conflict between a
2313	2313	provision of this Act and another Act passed by the 81st
2314	2314	Legislature, Regular Session, 2009, that becomes law, this Act
2315	2315	prevails and controls regardless of the relative dates of
2316	2316	enactment.
2317	2317	SECTION 11.06. (a) The changes in law made by this Act do
2318	2318	not affect the entitlement of a person who is a member of a board,
2319	2319	commission, or council serving immediately before the effective
2320	2320	date of this Act to continue to carry out the board's, commission's,
2321	2321	or council's functions for the remainder of the member's term.
2322	2322	(b) As soon as possible after the effective date of this
2323	2323	Act, the lieutenant governor and speaker of the house of
2324	2324	representatives shall appoint members in accordance with Sections
2325	2325	321.002, 322.001, 323.001, and 324.004, Government Code, as amended
2326	2326	by this Act, and Section 331.002, Government Code, as added by this
2327	2327	Act.
2328	2328	SECTION 11.07. This Act takes effect immediately if it
2329	2329	receives a vote of two-thirds of all the members elected to each
2330	2330	house, as provided by Section 39, Article III, Texas Constitution.
2331	2331	If this Act does not receive the vote necessary for immediate
2332	2332	effect, this Act takes effect September 1, 2009.