Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

         By:  Moncrief                                S.B. No. 1312

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the consolidation of the fiscal and program audit

 1-2     functions of the Texas Department of Criminal Justice.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Sections 493.002(a) and (c), Government Code, are

 1-5     amended to read as follows:

 1-6           (a)  The following divisions are within the department:

 1-7                 (1)  the community justice assistance division;

 1-8                 (2)  the institutional division;

 1-9                 (3)  the pardons and paroles division; [and]

1-10                 (4)  the state jail division; and

1-11                 (5)  the internal audit division.

1-12           (c)  The executive director shall hire a director for each

1-13     division in the department.  Except as provided by Section

1-14     493.0052, each [Each] director serves at the pleasure of the

1-15     executive director.

1-16           SECTION 2.  Section 493.0081, Government Code, is

1-17     redesignated as Section 493.0052, Government Code, and amended to

1-18     read as follows:

1-19           Sec. 493.0052 [493.0081].  [OFFICE OF] INTERNAL AUDIT

1-20     DIVISION [AUDITS].  (a)  The executive director [board] shall hire

1-21     a director for [create within] the [department an office of]

1-22     internal audit division [audits].  [The board shall employ a chief

1-23     of the office of internal audits based on recommendations from the

 2-1     executive director regarding qualified candidates for the

 2-2     position.]  The employment of the director [chief of the office of

 2-3     internal audits] may be terminated only with the approval of the

 2-4     board.

 2-5           (b)  The [office of] internal audit division [audits] shall

 2-6     conduct all internal audits, contract audits, and community

 2-7     supervision and corrections department audits for the department.

 2-8     The division shall:

 2-9                 (1)  conduct recurring financial and management audits;

2-10                 (2)  conduct internal audits to evaluate department

2-11     programs and the economy and efficiency of those programs; and

2-12                 (3)  recommend improvements in management and programs

2-13     on the basis of evaluations made under this subsection.

2-14           (c)  The director [chief of the office] of the internal audit

2-15     division [audits] shall send reports, audits, evaluations, and

2-16     recommendations to the executive director.  The director [chief]

2-17     shall report directly to the board at least once a year on:

2-18                 (1)  the activities of the division [office]; and

2-19                 (2)  the response of the department to recommendations

2-20     made by the division [office].

2-21           (d)  The director [chief] shall report directly to the board

2-22     on other matters at the times required by board policy.

2-23           (e)  The office of the state auditor shall provide ongoing

2-24     training and technical assistance for the benefit of the internal

2-25     audit division and the department's managers.  The training and

 3-1     assistance provided shall include training and assistance with

 3-2     respect to the design and implementation of effective internal

 3-3     audit plans, the development of practical fiscal oversight

 3-4     strategies that are prioritized according to degree of risk, and

 3-5     the advancement of antifraud measures.  The state auditor's office

 3-6     shall assist the department in preparing the annual audit plan

 3-7     required by Section 2102.005 for fiscal years 1998 and 1999.  This

 3-8     subsection expires January 1, 2000.

 3-9           SECTION 3.  Chapter 493, Government Code, is amended by

3-10     adding Section 493.0082 to read as follows:

3-11           Sec. 493.0082.  MONEY TO BE DEPOSITED IN TREASURY.  All money

3-12     collected or received by the department, including money in the

3-13     inmate trust account, employee trust account, or education and

3-14     recreation fund, shall be deposited in the general revenue fund of

3-15     the state treasury.  Money collected or received for a trust

3-16     account or special account shall be deposited to the credit of that

3-17     account.

3-18           SECTION 4.  Section 509.005(a), Government Code, is amended

3-19     to read as follows:

3-20           (a)  The division may inspect and evaluate a department and

3-21     the internal audit division may [or] conduct an audit of financial

3-22     records of a department at any reasonable time to determine

3-23     compliance with the division's rules and standards.

3-24           SECTION 5.  This Act takes effect September 1, 1997.

3-25           SECTION 6.  Not later than October 1, 1997, the custodian of

 4-1     a fund or account in which money is held by the Texas Department of

 4-2     Criminal Justice outside of the state treasury shall deposit that

 4-3     money in the general revenue fund of the state treasury as required

 4-4     by Section 493.0082, Government Code, as added by this Act.

 4-5           SECTION 7.  The importance of this legislation and the

 4-6     crowded condition of the calendars in both houses create an

 4-7     emergency and an imperative public necessity that the

 4-8     constitutional rule requiring bills to be read on three several

 4-9     days in each house be suspended, and this rule is hereby suspended.