This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.
By: Barrientos S.B. No. 147
A BILL TO BE ENTITLED
AN ACT
relating to the adoption by state agencies of risk management and
control strategies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 10, Government Code, is
amended by adding Chapter 2057 to read as follows:
CHAPTER 2057. STATE AGENCY RISK MANAGEMENT POLICIES AND CONTROL
STRATEGIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2057.001. DEFINITIONS. In this chapter:
(1) "Control strategy" means a state agency policy,
procedure, or process that is designed to signal the existence of a
risk and mitigate or avoid that risk.
(2) "Objective" means a goal to which senior
management of a state agency and the agency's governing body
intends to devote a significant portion of their time and attention
to accomplish during the biennium following a regular legislative
session.
(3) "Risk management" means:
(A) the identification of significant
impediments that may prevent a state agency from achieving its
objectives; or
(B) the identification of a significant
likelihood that an opportunity may be lost for enabling a state
agency to achieve its objectives.
(4) "State agency" means a department, commission,
board, office, authority, or other agency in the executive branch
of state government, created under the constitution or a statute,
with statewide authority, including a university system or an
institution of higher education as defined by Section 61.003,
Education Code.
[Sections 2057.002–2057.050 reserved for expansion]
SUBCHAPTER B. POWERS AND DUTIES
Sec. 2057.051. ADOPTION OF RISK MANAGEMENT AND CONTROL
STRATEGIES. (a) Not later than August 31 of each odd-numbered
year, the governing body of each state agency shall adopt risk
management and control strategies for the succeeding biennium.
(b) The risk management and control strategies must:
(1) specify the operational, strategic, and financial
objectives of the state agency;
(2) assess the nature and extent of the risks to
achieve those objectives;
(3) identify any significant risks that may impede the
achievement of those objectives;
(4) identify measures that may lessen or eliminate
significant risks, including alternative or contingency measures
for implementing the objectives; and
(5) analyze the likelihood that the risk may occur and
the cost of controlling the risk compared to the benefits of
managing the risk.
(c) Not later than the 10th day after the date on which the
governing body adopts its risk management and control strategies,
the governing body shall forward a copy of the strategies to the:
(1) governor;
(2) lieutenant governor;
(3) speaker of the house of representatives;
(4) comptroller; and
(5) Legislative Budget Board.
Sec. 2057.052. STATE AGENCY RESPONSIBILITIES. (a) Each
state agency shall implement the risk management and control
strategies adopted by its governing body under this subchapter.
(b) At least twice each year, the state agency shall provide
to the governing body progress reports concerning the
implementation of the adopted strategies.
(c) The state agency shall promptly notify its governing
body of the identification of any significant risk that threatens
to impede the achievement of an objective and of the measures taken
to mitigate or avoid that risk.
Sec. 2057.053. REPORT ON RISK MANAGEMENT AND CONTROL
STRATEGIES. (a) Not later than October 31 of each even-numbered
year, the governing body of each state agency shall report on its
level of achievement in implementing risk management and control
strategies for the current biennium. The governing body shall
submit the report to the:
(1) governor;
(2) lieutenant governor;
(3) speaker of the house of representatives;
(4) comptroller; and
(5) Legislative Budget Board.
(b) The report must:
(1) review whether the state agency has achieved the
objectives established for the biennium and, if not, whether the
state agency will achieve its objectives by the end of the biennium;
(2) describe any significant control strategy
failings or weaknesses that have been identified during the
biennium;
(3) assess the extent to which the identified failings
or weaknesses resulted in unforeseen outcomes that may have
prevented the achievement of the state agency's objectives or may
have had a material impact on the performance of the state agency's
mission;
(4) examine in detail any corrective action by the
state agency; and
(5) assess the state agency's control strategy,
including a review of the scope and quality of management's ongoing
monitoring of risks.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.