89R15311 SCF-D By: Olcott H.B. No. 4884 A BILL TO BE ENTITLED AN ACT relating to the operation of a fraud, waste, and abuse hotline and a duty to provide employees and the public with certain hotline information. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 38, Education Code, is amended by adding Section 38.0043 to read as follows: Sec. 38.0043. POSTING FRAUD, WASTE, AND ABUSE HOTLINE INFORMATION. Each public school and open-enrollment charter school shall prominently post the telephone number for the fraud, waste, and abuse hotline established under Section 321.024, Government Code, and information relating to reporting suspected fraud, waste, and abuse to the hotline: (1) on the school's Internet website; and (2) in each physical administrative office maintained by the school. SECTION 2. Chapter 321, Government Code, is amended by adding Section 321.024 to read as follows: Sec. 321.024. FRAUD, WASTE, AND ABUSE HOTLINE; REPORT. (a) The State Auditor shall operate a telephone hotline for submission of reports of suspected fraud, waste, and abuse. (b) The State Auditor shall refer each submitted report of suspected fraud, waste, or abuse to the appropriate state agency. On receipt of the report, the state agency shall investigate the suspected fraud, waste, or abuse and on completion of the investigation disclose the results of the investigation to the State Auditor. (c) Not later than September 1 of each odd-numbered year, the State Auditor shall prepare and submit to the legislature and each standing committee having jurisdiction over state agency fraud, waste, and abuse a report summarizing: (1) any reports of suspected fraud, waste, or abuse submitted to the hotline; (2) each state agency to which the State Auditor referred for investigation a report of suspected fraud, waste, or abuse; and (3) the results of any investigation conducted by a state agency after referral of a report of suspected fraud, waste, or abuse. SECTION 3. Subtitle B, Title 6, Government Code, is amended by adding Chapter 674 to read as follows: CHAPTER 674. INFORMATION RELATING TO FRAUD, WASTE, AND ABUSE HOTLINE Sec. 674.001. DEFINITION. In this chapter, "state agency" has the meaning assigned by Section 2054.003. Sec. 674.002. REQUIRED INFORMATION ON FRAUD, WASTE, AND ABUSE HOTLINE. A state agency shall provide to each new employee the telephone number for the fraud, waste, and abuse hotline established under Section 321.024 and information on the procedure for submitting a report of suspected fraud, waste, or abuse to the hotline. SECTION 4. Subchapter F, Chapter 2054, Government Code, is amended by adding Section 2054.139 to read as follows: Sec. 2054.139. REQUIRED POSTING OF FRAUD, WASTE, AND ABUSE HOTLINE INFORMATION. Each state agency and local government shall prominently post the telephone number for the fraud, waste, and abuse hotline established under Section 321.024 and information on the procedure for submitting a report of suspected fraud, waste, or abuse to the hotline: (1) on the agency's or local government's Internet website; and (2) in each physical administrative office maintained by the agency or local government. SECTION 5. Chapter 180, Local Government Code, is amended by adding Section 180.011 to read as follows: Sec. 180.011. REQUIRED INFORMATION ON FRAUD, WASTE, AND ABUSE HOTLINE. (a) In this section, "political subdivision" has the meaning assigned by Section 180.008. (b) A political subdivision shall provide to each new employee the telephone number for the fraud, waste, and abuse hotline established under Section 321.024, Government Code, and information on the procedure for submitting a report of suspected fraud, waste, or abuse to the hotline. SECTION 6. This Act takes effect September 1, 2025.