SRC-AXB S.B. 770 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 770
76R4924  JJT-FBy: Shapiro
State Affairs
3/15/1999
As Filed


DIGEST 

Passed by the Texas Legislature in May 1989, the Internal Audit Act
requires that certain agencies have an independent internal audit function;
sets forth guidelines for the internal audit; and establishes
qualifications, responsibilities, and standards for an internal auditor.
Maintaining the independence of the internal audit is important to its
function.  S.B. 770 creates additional provisions to maintain internal
auditor independence and increase audit process efficiency. 

PURPOSE

As proposed, S.B. 770 creates additional provisions for an internal auditor
of a state agency. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2102.006, Government Code, by amending
Subsection (a) and adding Subsection (d), as follows: 

(a)  Requires the governing body of a state agency, rather than its
designee, to appoint an internal auditor. 

(d)  Requires certain authorities to review an agency's staffing and budget
of the agency's internal auditing program to determine whether the agency
maintains adequate resources to address identified risks in the agency's
annual risk assessment. 

SECTION 2.  Amends Section 2102.007(a), Government Code, to require an
internal auditor to participate in an external peer review in accordance
with standards described by Section 2102.011, Government Code. 

SECTION 3.  Amends Section 2102.008, Government Code, to make a conforming
change. 

SECTION 4.  Repealer:  Section 2102.009, Government Code (Annual Report).

SECTION 5.  Effective date:  September 1, 1999.

SECTION 6.  Emergency clause.