SRC-SEW H.B. 609 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 609
77R9964 JJT-DBy: Hochberg (Shapiro)
Finance
5/9/2001
Engrossed


DIGEST AND PURPOSE 

Current law requires a state agency that has an annual operating budget
that exceeds $10 million, that has a staff of more than 300 employees, or
that receives and processes cash items in excess of $10 million annually to
appoint an internal auditor. This excludes smaller agencies that may be
able to improve performance by identifying problems through an internal
audit. H.B. 609 extends the internal audit requirement to all state
agencies that receive an appropriation.  

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2102.004, Government Code, as follows:

Sec. 2102.004.  Provides that this chapter applies to each state agency
that receives an appropriation.  Deletes text regarding state agencies that
have a certain operating budget, a certain number of employees, or that
receive or process cash items in excess of a certain amount.   
 
SECTION 2. Amends Section 2102.006(a), Government Code, to require the
governing board of a state agency or the administrator of a state agency
that does not have (rather than without) a governing board to appoint an
internal auditor.  Deletes text regarding a governing board's designee. 
 
SECTION 3. Amends Section 2102.007(a), Government Code, to require the
internal auditor to perform certain functions.   
 
SECTION 4. Amends Sections 2102.008, 2102.0091, and 2102.010, Government
Code, as follows:   
 
 Sec. 2102.008.  Makes conforming changes.  
 
Sec. 2102.0091.  (a)  Requires a state agency to file with the Sunset
Advisory Commission, the budget division of the governor's office, the
state auditor, and the Legislative Budget Board a copy of each report
submitted by the agency's internal auditor to the state agency's governing
board (rather than body) or the administrator of the state agency if the
state agency does not have a governing board. 
 
  (b)  Makes conforming changes.  
 
  (c)  Makes conforming changes.
 
 Sec. 2102.010.  Makes conforming changes.
 
 SECTION 5. Sets forth requirements and guidelines regarding a state agency
to which Chapter  2102, Government Code, did not apply before September 1,
2001, that becomes subject to Chapter 2102, Government Code, on September
1, 2001. 
 
SECTION 6. Effective date: September 1, 2001.