By Harris S.B. No. 1188
77R8263 BDH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of an office of inspector general.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle C, Title 3, Government Code, is amended
1-5 by adding Chapter 328 to read as follows:
1-6 CHAPTER 328. INSPECTOR GENERAL
1-7 Sec. 328.001. CREATION. The office of inspector general is
1-8 created.
1-9 Sec. 328.002. APPOINTMENT; TERM; QUALIFICATIONS. (a) The
1-10 legislative audit committee shall appoint a person to serve as
1-11 inspector general for a two-year term expiring February 1 of each
1-12 odd-numbered year.
1-13 (b) The legislative audit committee shall appoint an
1-14 inspector general without regard to political affiliation and
1-15 solely on the basis of integrity and demonstrated ability in
1-16 accounting, auditing, and financial, legal, and managerial
1-17 analysis.
1-18 Sec. 328.003. VACANCY. In the case of a vacancy in the
1-19 position of inspector general, a successor shall be appointed for
1-20 the unexpired term.
1-21 Sec. 328.004. REMOVAL FOR CAUSE. (a) The legislative audit
1-22 committee may remove the inspector general from office for cause,
1-23 including substantial neglect of duty, gross misconduct, or
1-24 conviction of a crime.
2-1 (b) If the legislative audit committee removes the inspector
2-2 general from office, the committee shall notify the inspector
2-3 general of the cause for removal in writing and shall send a copy
2-4 of the written notification to both houses of the legislature.
2-5 Sec. 328.005. ASSISTANT INSPECTORS GENERAL; STAFF. The
2-6 inspector general may appoint assistant inspectors general and may
2-7 employ staff as necessary to perform the duties of the office of
2-8 inspector general subject to the General Appropriations Act.
2-9 Sec. 328.006. POLITICAL ACTIVITY PROHIBITED. (a) The
2-10 inspector general or an employee of the office of inspector general
2-11 may not hold, or be a candidate for, any elective public office
2-12 before the third anniversary of the date the inspector general or
2-13 employee completes the term of office or period of employment, as
2-14 applicable.
2-15 (b) The inspector general or an employee of the office of
2-16 inspector general may not hold office in a political party or
2-17 political committee or participate in a political campaign of a
2-18 candidate for public office.
2-19 Sec. 328.007. ACCOUNTABILITY AND AUTONOMY. (a) The
2-20 inspector general shall report to the legislative audit committee
2-21 as necessary to carry out the duties of the office of inspector
2-22 general.
2-23 (b) The legislative audit committee may supervise the
2-24 activities of the office of the inspector general, but may not
2-25 prevent the inspector general from initiating, carrying out, or
2-26 completing an audit or investigation, or from issuing a subpoena
2-27 during the course of an audit or investigation.
3-1 Sec. 328.008. POWERS AND DUTIES. The office of inspector
3-2 general shall:
3-3 (1) conduct audits of and review and analyze the
3-4 effectiveness of the use of funds, including contract funds and
3-5 grants, allocated to programs and operations administered by a
3-6 person receiving state or federal funds as a result of a grant from
3-7 or contract with an agency described by Section 328.009 and conduct
3-8 investigations relating to those programs and operations;
3-9 (2) review existing and proposed legislation or rules
3-10 relating to programs and operations administered by a person
3-11 receiving state or federal funds as a result of a grant from or
3-12 contract with an agency described by Section 328.009 to determine
3-13 the impact of the legislation or rules on the economy and
3-14 efficiency in the administration of those programs and operations
3-15 or on the detection and prevention of fraud or abuse in the
3-16 administration of those programs and operations;
3-17 (3) recommend policies for the promotion of economy
3-18 and efficiency in the administration of programs and operations
3-19 administered by a person receiving state or federal funds as a
3-20 result of a grant from or contract with an agency described by
3-21 Section 328.009 and in the detection and prevention of fraud and
3-22 abuse in the administration of those programs and operations;
3-23 (4) recommend policies for the coordination of
3-24 relationships between each person receiving state or federal funds
3-25 as a result of a grant from or contract with an agency described by
3-26 Section 328.009 and federal agencies, other state agencies, local
3-27 governmental agencies, and nongovernmental entities regarding:
4-1 (A) the promotion of economy and efficiency in
4-2 the administration of, or the prevention and detection of fraud and
4-3 abuse in, programs and operations administered by a person
4-4 receiving state or federal funds as a result of a grant from or
4-5 contract with an agency described by Section 328.009; or
4-6 (B) the identification and prosecution of
4-7 participants in any detected fraud or abuse;
4-8 (5) provide current information to the legislative
4-9 audit committee and the legislature about fraud, abuse,
4-10 deficiencies, and other problems in the administration of programs
4-11 and operations administered by a person receiving state or federal
4-12 funds as a result of a grant from or contract with an agency
4-13 described by Section 328.009, recommend corrective action
4-14 concerning those problems, and report on the progress of corrective
4-15 action; and
4-16 (6) coordinate enforcement and administration of
4-17 Chapter 554, as appropriate.
4-18 Sec. 328.009. APPLICABILITY. The inspector general shall
4-19 perform the duties under this chapter only as they relate to the
4-20 use of state or federal funds by a person receiving a grant from or
4-21 contracting with any of the following state agencies:
4-22 (1) the Texas Commission on Alcohol and Drug Abuse;
4-23 (2) the Texas Department of Economic Development;
4-24 (3) the Texas Department of Health;
4-25 (4) the Texas Department of Housing and Community
4-26 Affairs;
4-27 (5) the Texas Department of Human Services;
5-1 (6) the Texas Department of Mental Health and Mental
5-2 Retardation;
5-3 (7) the Texas Department of Protective and Regulatory
5-4 Services;
5-5 (8) the Texas Rehabilitation Commission; and
5-6 (9) the Texas Workforce Commission.
5-7 Sec. 328.010. ACCESS TO INFORMATION; ASSISTANCE. (a) The
5-8 inspector general, in administering this chapter, is entitled to:
5-9 (1) have access to all records, reports, audits,
5-10 reviews, documents, papers, recommendations, or other material
5-11 available to or in custody of a person receiving state or federal
5-12 funds as a result of a grant from or contract with an agency
5-13 described by Section 328.009 that relate to a program or operation
5-14 for which the inspector general has responsibility under this
5-15 chapter;
5-16 (2) make any investigation or report of the
5-17 administration of a program or operation for which the inspector
5-18 general has responsibility under this chapter that the inspector
5-19 general determines is necessary or appropriate;
5-20 (3) have access to information in the custody of or
5-21 assistance from any state agency or local government that is
5-22 necessary to administer this chapter;
5-23 (4) have direct and prompt access to the legislative
5-24 audit committee when necessary for any purpose relating to the
5-25 administration of this chapter; and
5-26 (5) enter into contracts or make arrangements with
5-27 public agencies or private entities or individuals for audits,
6-1 studies, analyses, and other services as necessary to administer
6-2 this chapter, subject to the General Appropriations Act.
6-3 (b) The inspector general may issue subpoenas to compel the
6-4 production of information, documents, reports, answers, records,
6-5 accounts, papers, or other data and documentary evidence necessary
6-6 to administer this chapter. A district court may enforce a
6-7 subpoena issued by the inspector general under this chapter.
6-8 Sec. 328.011. COMPLAINTS; INFORMATION. (a) The inspector
6-9 general, in the administration of this chapter, may receive and
6-10 investigate complaints or information concerning the possible
6-11 existence of:
6-12 (1) mismanagement;
6-13 (2) a gross waste of funds;
6-14 (3) an abuse of authority;
6-15 (4) a violation of law; or
6-16 (5) a substantial and specific danger to the public
6-17 health and safety.
6-18 (b) The inspector general may not disclose the identity of
6-19 the person who makes the complaint or provides the information
6-20 without that person's consent unless the inspector general
6-21 determines that disclosure is unavoidable during the course of the
6-22 investigation.
6-23 (c) A person who has authority to take, direct others to
6-24 take, recommend, or approve any personnel action may not take or
6-25 threaten to take any action against another person for making a
6-26 complaint or disclosing information to the inspector general,
6-27 unless the complaint or disclosure of information was made with the
7-1 knowledge that it was false or with wilful disregard for its
7-2 veracity.
7-3 Sec. 328.012. AUDITS. (a) In conducting an audit under
7-4 this chapter, the inspector general shall:
7-5 (1) comply with applicable state and federal law; and
7-6 (2) conduct the audit in accordance with generally
7-7 accepted auditing standards as prescribed by the state auditor, the
7-8 Institute of Internal Auditors, and the United States General
7-9 Accounting Office.
7-10 (b) The inspector general shall establish guidelines for
7-11 determining when it is appropriate to require an independent audit
7-12 and shall take action necessary to ensure that any audit conducted
7-13 by an independent auditor complies with the requirements of
7-14 Subsection (a).
7-15 Sec. 328.013. COOPERATION WITH OTHER STATE AGENCIES. The
7-16 inspector general shall cooperate with the state auditor and the
7-17 comptroller in administering this chapter.
7-18 Sec. 328.014. REPORT OF VIOLATION OF CRIMINAL LAW. (a) The
7-19 inspector general shall promptly report to the attorney general and
7-20 to the local attorney representing the state in the prosecution of
7-21 felonies if as a result of an audit or investigation under this
7-22 chapter the inspector general has reasonable cause to believe that
7-23 a violation of state criminal law has occurred.
7-24 (b) The inspector general shall promptly report to the
7-25 United States district attorney for the appropriate judicial
7-26 district if as a result of an audit or investigation under this
7-27 chapter the inspector general has reasonable cause to believe that
8-1 a violation of federal criminal law has occurred.
8-2 Sec. 328.015. REPORT. (a) The inspector general shall
8-3 prepare and submit to the legislative audit committee not later
8-4 than December 31 of each even-numbered year a written report that
8-5 summarizes the activities of the office of the inspector general
8-6 during the preceding two-year period. The report must:
8-7 (1) describe any significant problem, abuse, or
8-8 deficiency in the administration of a program or operation
8-9 disclosed by the inspector general during the reporting period;
8-10 (2) describe any corrective action recommended by the
8-11 inspector general during the reporting period with respect to a
8-12 problem, abuse, or deficiency described by Subdivision (1);
8-13 (3) identify each significant recommendation submitted
8-14 in a previous report for which corrective action is not complete;
8-15 (4) summarize matters referred to prosecuting
8-16 authorities during the reporting period and the disposition of
8-17 those matters; and
8-18 (5) list each audit report completed by the office
8-19 during the reporting period.
8-20 (b) Not later than the 30th day after the date of receipt of
8-21 a report under Subsection (a), the legislative audit committee
8-22 shall send the report to the governor and the presiding officer of
8-23 each house of the legislature and shall include with the report any
8-24 written recommendation the committee determines is appropriate. On
8-25 request, the committee shall also make copies of the report
8-26 available to the public at reasonable cost.
8-27 (c) The inspector general shall immediately report to the
9-1 legislative audit committee on receipt of information indicating a
9-2 particularly serious or flagrant problem, abuse, or deficiency
9-3 relating to the administration of a program or operation, as
9-4 determined by the inspector general. Not later than the seventh
9-5 day after the date of receipt of a report under this subsection,
9-6 the committee shall send the report to the governor and the
9-7 presiding officer of each house of the legislature and shall
9-8 include with the report any written recommendation the committee
9-9 determines is appropriate.
9-10 SECTION 2. (a) As soon as possible after the effective date
9-11 of this Act, but not later than January 1, 2002, the legislative
9-12 audit committee shall appoint an inspector general. The initial
9-13 term of the inspector general ends on February 1, 2003.
9-14 (b) During the period between the effective date of this Act
9-15 and the date the inspector general appointed under Subsection (a)
9-16 of this section qualifies for office, any office of internal audits
9-17 or internal audit program of an agency described by Section
9-18 328.009, Government Code, as added by this Act, continues to keep
9-19 the same functions it had under the law as it existed immediately
9-20 before the effective date of this Act, and the former law is
9-21 continued in effect for that purpose. On the date an inspector
9-22 general is appointed and qualifies for office under Subsection (a)
9-23 of this section, that inspector general shall assume the functions
9-24 of that office of internal audits or internal audit program that
9-25 are related to the audit or investigation of a person receiving
9-26 state or federal funds as a result of a grant from or contract with
9-27 the agency.
10-1 SECTION 3. This Act takes effect September 1, 2001.