82R13124 JRJ-D By: Hochberg H.B. No. 3361 A BILL TO BE ENTITLED AN ACT relating to financial oversight of junior college districts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2102.003(5), Government Code, is amended to read as follows: (5) "State agency" means a department, board, bureau, institution, commission, or other agency in the executive branch of state government. The term includes a junior college district. SECTION 2. Section 2102.009, Government Code, is amended to read as follows: Sec. 2102.009. ANNUAL REPORT. (a) The internal auditor of a state agency other than a junior college district shall prepare an annual report and submit the report before November 1 of each year to the governor, the Legislative Budget Board, the Sunset Advisory Commission, the state auditor, the state agency's governing board, and the administrator. (b) The internal auditor of a junior college district shall prepare an annual report and submit the report before November 1 of each year to the state auditor and the Texas Higher Education Coordinating Board. (c) The state auditor shall prescribe the form and content of the annual report, subject to the approval of the legislative audit committee. SECTION 3. Sections 2102.0091(a) and (c), Government Code, are amended to read as follows: (a) A state agency, other than a junior college district, shall file with the Sunset Advisory Commission, the budget division of the governor's office, the state auditor, and the Legislative Budget Board a copy of each report submitted to the state agency's governing board or the administrator of the state agency if the state agency does not have a governing board by the agency's internal auditor. A junior college district shall file a copy of each report submitted to the district's governing board by its internal auditor with the state auditor and the Texas Higher Education Coordinating Board. (c) In addition to the requirements of Subsection (a), a state agency, other than a junior college district, shall file with the budget division of the governor's office, the state auditor, and the Legislative Budget Board any action plan or other response issued by the state agency's governing board or the administrator of the state agency if the state agency does not have a governing board in response to the report of the state agency's internal auditor. A junior college district shall file any action plan or other response issued by the district's governing board to the internal auditor's report with the state auditor and the Texas Higher Education Coordinating Board. SECTION 4. Section 2102.013, Government Code, is amended by adding Subsection (d) to read as follows: (d) A junior college district shall submit a copy of the written risk assessment to the Texas Higher Education Coordinating Board. SECTION 5. The change in law made by this Act applies beginning with the 2014-2015 fiscal year. SECTION 6. This Act takes effect September 1, 2011.