78R6569 KEG-D
By: Swinford H.B. No. 1742
A BILL TO BE ENTITLED
AN ACT
relating to issues involving the operations or financial
accountability of state agencies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 321.013, Government Code, is amended by
adding Subsection (j) to read as follows:
(j) The State Auditor shall:
(1) develop fraud awareness training programs for use
by state agencies;
(2) identify qualified individuals or entities to
assist state agencies in implementing the programs; and
(3) make the programs available to state agencies on
the Internet or in a CD-ROM format.
SECTION 2. Chapter 322, Government Code, is amended by
adding Section 322.015 to read as follows:
Sec. 322.015. DEVELOPMENT OF SYSTEM OF PERFORMANCE
MEASURES. (a) The Legislative Budget Board shall develop a system
of performance measures to be used by state agencies for purposes of
the appropriations process.
(b) The Legislative Budget Board shall keep the House
Appropriations Committee and the Senate Finance Committee informed
of the board's activities related to the development of the system
of performance measures.
(c) On request, a state agency shall provide information or
assistance to the Legislative Budget Board to assist with the
development of the system of performance measures.
SECTION 3. Section 403.011(b), Government Code, is amended
to read as follows:
(b) The comptroller may:
(1) solicit, accept, or refuse a gift or grant of
money, services, or property on behalf of the state for any public
purpose related to the office or duties of the comptroller; and
(2) verify that a state agency has provided
appropriate fraud awareness training in accordance with Section
656.050.
SECTION 4. Subchapter C, Chapter 656, Government Code, is
amended by adding Section 656.050 to read as follows:
Sec. 656.050. FRAUD AWARENESS TRAINING. (a) In this
section, "state agency" means a department, commission, board,
office, or other agency in the executive, legislative, or judicial
branch of state government created by the constitution or a statute
of this state, including an institution of higher education as
defined by Section 61.003, Education Code, except a public junior
college, and a health-related institution that is associated with
an institution of higher education.
(b) A state agency shall provide fraud awareness training to
the employees of the agency by implementing a fraud awareness
training program developed by the state auditor. The agency shall
provide the training to an employee not later than the 90th day
after the date the employee begins employment.
(c) The executive director of a state agency, or the
executive director's designee, annually shall certify to the
comptroller that the agency has provided appropriate fraud
awareness training to the employees of the agency in a timely
manner.
SECTION 5. Section 2056.002, Government Code, is amended by
adding Subsection (f) to read as follows:
(f) The Legislative Budget Board and the governor's office
of budget and planning shall develop recommendations for
improvement of the strategic planning process under this section.
On request, a state agency shall assist the Legislative Budget
Board and the governor's office of budget and planning in
developing recommendations for improvement in accordance with this
subsection.
SECTION 6. Subtitle C, Title 10, Government Code, is
amended by adding Chapter 2115 to read as follows:
CHAPTER 2115. RISK ASSESSMENT AND FINANCIAL CONTROL SYSTEMS
Sec. 2115.001. DEFINITION. In this chapter, "state agency"
means a department, commission, board, office, or other agency in
the executive, legislative, or judicial branch of state government
created by the constitution or a statute of this state, including an
institution of higher education as defined by Section 61.003,
Education Code, except a public junior college, and a
health-related institution that is associated with an institution
of higher education.
Sec. 2115.002. REPORT ON RISK ASSESSMENT AND FINANCIAL
CONTROL SYSTEMS. (a) Not later than September 30 of each year, the
executive director of a state agency and, for a state agency
governed by a board or similar body, the presiding officer of the
agency's governing body shall submit to the office of the governor,
the Legislative Budget Board, and the state auditor, a letter that
provides assurance about the state agency's risk assessment and
financial control systems.
(b) If the executive director and the presiding officer of
the agency's governing body agree on the content of the letter
required by this section, they shall jointly submit one letter for
the state agency. If the executive director and the presiding
officer do not agree on the content of the letter, they shall each
submit a separate letter in accordance with this section.
(c) A person submitting or jointly submitting a letter in
accordance with this section must sign the letter and, as
appropriate, attest in the letter that:
(1) the person has identified and reviewed risks that
may affect the state agency's operation and the achievement of its
mission;
(2) the person has taken appropriate action to manage
and reduce the actual and potential effects of the risks identified
under Subdivision (1) on the state agency;
(3) the person has reviewed the state agency's
financial control systems; and
(4) to the best of the person's knowledge after
reasonable efforts to obtain accurate information:
(A) the financial control systems identified
under Subdivision (3) protect the state's resources from
inappropriate use and fraud to the greatest extent possible; and
(B) as of the date the letter is submitted, the
financial statements and other financial information reported by
the state agency fairly represent the financial condition and
results of the agency's operations.
(d) If a person is unable to attest to any of the statements
under Subsection (c), the person must identify in the letter the
statement and the reason or reasons why the person is unable to
attest to it.
(e) A letter submitted under this section must identify any
ongoing or future planned actions to correct problems in or
strengthen the state agency's risk assessment or financial control
systems and the date the actions were, or are expected to be,
implemented.
(f) If a state agency fails to timely submit a letter in
accordance with this section, the state auditor shall report to any
relevant legislative committees the fact of the state agency's
failure to do so.
SECTION 7. Not later than August 31, 2004, the state auditor
shall develop and make available training programs for use by state
agencies, as required by Section 321.013(j), Government Code, as
added by this Act.
SECTION 8. Not later than the first anniversary of the date
a fraud awareness program developed by the state auditor is made
available to a state agency, the agency must provide fraud
awareness training as required by Section 656.050, Government Code,
as added by this Act, to all employees hired before that date. The
deadline prescribed by Section 656.050(b), Government Code, as
added by this Act, does not apply to the provision of the fraud
awareness training to those employees.
SECTION 9. This Act takes effect September 1, 2003.