LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 30, 2001
  
  
          TO:  Honorable David Cain, Chair, Senate Committee on
               Administration
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1188  by Harris (Relating to the creation of an office
               of inspector general.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend the Government Code to create the Office of
Inspector General.  The Inspector General would be appointed by the
Legislative Audit Committee for a two-year term expiring on February 1 of
odd-numbered years.  Powers and duties of the new office would include
conducting audits and reviews of the effectiveness of state and federal
contract and grant use; reviewing relevant existing and proposed
legislation and rules; recommending policies for the promotion of economy
and efficiency in grant and contract use; recommending policies for
coordination between federal, state, and other agencies and contract and
grant users; providing current information on grant and contract use to
the Legislative Audit Committee and the Legislature and recommending
corrective actions; and coordinating the enforcement and administration
of fraud and abuse reports from public employees.  The Inspector General
also would receive and investigate complaints and other information
concerning the possible mismanagement, waste, abuse, violation, or public
health and safety dangers in the use of affected funding.

This bill would take effect September 1, 2001.  The Inspector General
would be appointed and assume the specified internal audit functions of
the affected agencies (the Commission on Alcohol and Drug Abuse, the
Department of Economic Development, the Department of Health, the
Department of Housing and Community Affairs, the Department of Human
Services, the Department of Mental Health and Mental Retardation, the
Department of Protective and Protective and Regulatory Services, the
Rehabilitation Commission, and the Workforce Commission) no later than
January 1, 2002.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   308   State Auditor's Office, 304   Comptroller of
                   Public Accounts
LBB Staff:         JK, SD, MF