1-1 By: Nelson S.B. No. 703
1-2 (In the Senate - Filed February 21, 1997; February 25, 1997,
1-3 read first time and referred to Committee on Criminal Justice;
1-4 April 22, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; April 22, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 703 By: Nelson
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the consolidation of the fiscal and program audit
1-11 functions of the Texas Department of Criminal Justice.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subsection (a), Section 491.001, Government Code,
1-14 is amended to read as follows:
1-15 (a) In this subtitle, except for Chapter 511:
1-16 (1) "Board" means the Texas Board of Criminal Justice.
1-17 (2) "Community justice assistance division" means the
1-18 community justice assistance division of the department.
1-19 (3) "Department" means the Texas Department of
1-20 Criminal Justice, except in Chapter 509.
1-21 (4) "Executive director" means the executive director
1-22 of the department.
1-23 (5) "Institutional division" means the institutional
1-24 division of the department.
1-25 (6) "Internal audit division" means the internal audit
1-26 division of the department.
1-27 (7) "Pardons and paroles division" means the pardons
1-28 and paroles division of the department.
1-29 (8) [(7)] "State jail division" means the state jail
1-30 division of the department.
1-31 SECTION 2. Subsections (a) and (c), Section 493.002,
1-32 Government Code, are amended to read as follows:
1-33 (a) The following divisions are within the department:
1-34 (1) the community justice assistance division;
1-35 (2) the institutional division;
1-36 (3) the pardons and paroles division; [and]
1-37 (4) the state jail division; and
1-38 (5) the internal audit division.
1-39 (c) Except as provided by Section 493.0052, the [The]
1-40 executive director shall hire a director for each division in the
1-41 department, and each [. Each] director serves at the pleasure of
1-42 the executive director.
1-43 SECTION 3. Section 493.0081, Government Code, is
1-44 redesignated as Section 493.0052, Government Code, and amended to
1-45 read as follows:
1-46 Sec. 493.0052 [493.0081]. [OFFICE OF] INTERNAL AUDIT
1-47 DIVISION [AUDITS]. (a) The board shall hire a director for
1-48 [create within] the [department an office of] internal audit
1-49 division [audits]. [The board shall employ a chief of the office
1-50 of internal audits based on recommendations from the executive
1-51 director regarding qualified candidates for the position.] The
1-52 employment of the director [chief of the office of internal audits]
1-53 may be terminated only with the approval of the board.
1-54 (b) The [office of] internal audit division [audits] shall
1-55 conduct a program of internal auditing in accordance with Chapter
1-56 2102. The program may include internal audits, contract audits,
1-57 and community supervision and corrections department audits for the
1-58 department. The division shall:
1-59 (1) conduct recurring financial and management audits;
1-60 (2) conduct internal audits to evaluate department
1-61 programs and the economy and efficiency of those programs; and
1-62 (3) recommend improvements in management and programs
1-63 on the basis of evaluations made under this subsection.
1-64 (c) The director [chief of the office] of the internal audit
2-1 division [audits] shall send reports, audits, evaluations, and
2-2 recommendations to the board and to the executive director. The
2-3 director [chief] shall report directly to the board at least once a
2-4 year on:
2-5 (1) the activities of the division [office]; and
2-6 (2) the response of the department to recommendations
2-7 made by the division [office].
2-8 (d) The director [chief] shall report directly to the board
2-9 on other matters at the times required by board policy.
2-10 (e) The office of the state auditor shall provide ongoing
2-11 training and technical assistance for the benefit of the internal
2-12 audit division and the department's managers. The training and
2-13 assistance provided shall include training and assistance with
2-14 respect to the design and implementation of effective internal
2-15 audit plans, the development of practical fiscal oversight
2-16 strategies that are prioritized according to degree of risk, and
2-17 the advancement of antifraud measures. The state auditor's office
2-18 shall assist the department in preparing the annual audit plan
2-19 required by Section 2102.005 for fiscal years 1998 and 1999. This
2-20 subsection expires January 1, 2000.
2-21 SECTION 4. Chapter 493, Government Code, is amended by
2-22 adding Section 493.0082 to read as follows:
2-23 Sec. 493.0082. DISPOSITION OF CERTAIN FINANCIAL ASSETS.
2-24 (a) All money and other financial assets collected or received by
2-25 the department shall be deposited:
2-26 (1) in the general revenue fund of the state treasury;
2-27 (2) in trust with the comptroller; or
2-28 (3) in a local bank account on approval by the
2-29 comptroller.
2-30 (b) For purposes of this section, a financial asset
2-31 collected or received by the department includes:
2-32 (1) an asset held outside the state treasury; or
2-33 (2) an asset held in trust by the department, such as
2-34 money held in an inmate or employee trust account or in an
2-35 education and recreation account.
2-36 SECTION 5. Subsection (a), Section 509.005, Government Code,
2-37 is amended to read as follows:
2-38 (a) The community justice assistance division shall from
2-39 time to time [may] inspect and evaluate and the internal audit
2-40 division may at any reasonable time [a department or] conduct an
2-41 audit of the financial, program compliance, or performance records
2-42 of a department [at any reasonable time] to determine:
2-43 (1) compliance with the division's rules and
2-44 standards;
2-45 (2) economical and efficient use of resources;
2-46 (3) accomplishment of goals and objectives;
2-47 (4) reliability and integrity of information; and
2-48 (5) safeguarding of assets.
2-49 SECTION 6. This Act takes effect September 1, 1997.
2-50 SECTION 7. Not later than October 1, 1997, the custodian of
2-51 a fund or account in which a financial asset, including money, is
2-52 held by the Texas Department of Criminal Justice outside of the
2-53 state treasury shall deposit that asset in the general revenue fund
2-54 of the state treasury, in trust with the comptroller of public
2-55 accounts, or in a local bank account as required by Section
2-56 493.0082, Government Code, as added by this Act.
2-57 SECTION 8. The importance of this legislation and the
2-58 crowded condition of the calendars in both houses create an
2-59 emergency and an imperative public necessity that the
2-60 constitutional rule requiring bills to be read on three several
2-61 days in each house be suspended, and this rule is hereby suspended.
2-62 * * * * *