83R9818 CJC-F
By: Parker H.B. No. 2439
A BILL TO BE ENTITLED
AN ACT
relating to the review of certain contracts by the state auditor.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 321.013(c), Government Code, is amended
to read as follows:
(c) The State Auditor shall recommend the audit plan for the
state for each year to the committee. In devising the plan, the
State Auditor shall consider recommendations concerning
coordination of agency functions made jointly by representatives of
the Legislative Budget Board, Sunset Advisory Commission, and State
Auditor's Office. The State Auditor shall also consider the extent
to which a department has received a significant increase in
appropriations, including a significant increase in federal or
other money passed through to the department, and shall review
procurement activities for compliance with Section 2161.123. The
plan shall provide for auditing of federal programs at least as
often as required under federal law and shall ensure that audit
requirements of all bond covenants and other credit or financial
agreements are satisfied. The plan shall provide for auditing at
least three major contracts as prescribed by Section 321.0139. The
committee shall review and approve the plan.
SECTION 2. Chapter 321, Government Code, is amended by
adding Section 321.0139 to read as follows:
Sec. 321.0139. REVIEW OF MAJOR CONTRACTS. (a) In this
section, "major contract" means a state agency contract that has a
value of at least $1 million and involves the provision of services
to residents of this state.
(b) Each year, the state auditor shall review at least three
major contracts based on the risk assessment performed by the state
auditor under Section 321.013(j). A review under this section is
limited to an analysis of the efficiency and effectiveness of the
contract in providing services to residents of this state.
SECTION 3. The change in law made by this Act applies only
to an audit plan devised by the state auditor on or after the
effective date of this Act.
SECTION 4. This Act takes effect September 1, 2013.