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By: Staples S.B. No. 1842
A BILL TO BE ENTITLED
AN ACT
relating to the creation of an office of inspector general.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 3, Government Code, is amended
by adding Chapter 328 to read as follows:
CHAPTER 328. INSPECTOR GENERAL
Sec. 328.001. CREATION. The office of inspector general is
created.
Sec. 328.002. APPOINTMENT; TERM; QUALIFICATIONS. (a) The
governor shall appoint a person to serve as inspector general for a
two-year term expiring February 1 of each odd-numbered year.
(b) The governor shall appoint an inspector general without
regard to political affiliation and solely on the basis of
integrity and demonstrated ability in accounting, auditing, and
financial, legal, and managerial analysis.
Sec. 328.003. VACANCY. In the case of a vacancy in the
position of inspector general, a successor shall be appointed for
the unexpired term.
Sec. 328.004. REMOVAL FOR CAUSE. (a) The governor may
remove the inspector general from office for cause, including
substantial neglect of duty, gross misconduct, or conviction of a
crime.
(b) If the governor removes the inspector general from
office, the committee shall notify the inspector general of the
cause for removal in writing and shall send a copy of the written
notification to both houses of the legislature.
Sec. 328.005. ASSISTANT INSPECTORS GENERAL; STAFF. The
inspector general may appoint assistant inspectors general and may
employ staff as necessary to perform the duties of the office of
inspector general subject to the General Appropriations Act.
Sec. 328.006. POLITICAL ACTIVITY PROHIBITED. (a) The
inspector general or an employee of the office of inspector general
may not hold, or be a candidate for, any elective public office
before the third anniversary of the date the inspector general or
employee completes the term of office or period of employment, as
applicable.
(b) The inspector general or an employee of the office of
inspector general may not hold office in a political party or
political committee or participate in a political campaign of a
candidate for public office.
Sec. 328.007. ACCOUNTABILITY AND AUTONOMY. (a) The
inspector general shall report to the governor as necessary to
carry out the duties of the office of inspector general.
(b) The governor may supervise the activities of the office
of the inspector general, but may not prevent the inspector general
from initiating, carrying out, or completing an audit or
investigation, or from issuing a subpoena during the course of an
audit or investigation.
Sec. 328.008. POWERS AND DUTIES. The office of inspector
general shall:
(1) conduct audits of and review and analyze the
effectiveness of the use of funds, including contract funds and
grants, allocated to programs and operations administered by a
person receiving state or federal funds as a result of a grant from
or contract with an agency described by Section 328.009 and conduct
investigations relating to those programs and operations;
(2) review existing and proposed legislation or rules
relating to programs and operations administered by a person
receiving state or federal funds as a result of a grant from or
contract with an agency described by Section 328.009 to determine
the impact of the legislation or rules on the economy and efficiency
in the administration of those programs and operations or on the
detection and prevention of fraud or abuse in the administration of
those programs and operations;
(3) recommend policies for the promotion of economy
and efficiency in the administration of programs and operations
administered by a person receiving state or federal funds as a
result of a grant from or contract with an agency described by
Section 328.009 and in the detection and prevention of fraud and
abuse in the administration of those programs and operations;
(4) recommend policies for the coordination of
relationships between each person receiving state or federal funds
as a result of a grant from or contract with an agency described by
Section 328.009 and federal agencies, other state agencies, local
governmental agencies, and nongovernmental entities regarding:
(A) the promotion of economy and efficiency in
the administration of, or the prevention and detection of fraud and
abuse in, programs and operations administered by a person
receiving state or federal funds as a result of a grant from or
contract with an agency described by Section 328.009; or
(B) the identification and prosecution of
participants in any detected fraud or abuse;
(5) provide current information to the governor and
the legislature about fraud, abuse, deficiencies, and other
problems in the administration of programs and operations
administered by a person receiving state or federal funds as a
result of a grant from or contract with an agency described by
Section 328.009, recommend corrective action concerning those
problems, and report on the progress of corrective action; and
(6) coordinate enforcement and administration of
Chapter 554, as appropriate.
Sec. 328.009. APPLICABILITY. The inspector general shall
perform the duties under this chapter only as they relate to the use
of state or federal funds by a person receiving a grant from or
contracting with any of the following state agencies:
(1) the Texas Commission on Alcohol and Drug Abuse;
(2) the Texas Department of Economic Development;
(3) the Texas Department of Health;
(4) the Texas Department of Housing and Community
Affairs;
(5) the Texas Department of Human Services;
(6) the Texas Department of Mental Health and Mental
Retardation;
(7) the Texas Department of Protective and Regulatory
Services;
(8) the Texas Rehabilitation Commission; and
(9) the Texas Workforce Commission.
Sec. 328.010. ACCESS TO INFORMATION; ASSISTANCE. (a) The
inspector general, in administering this chapter, is entitled to:
(1) have access to all records, reports, audits,
reviews, documents, papers, recommendations, or other material
available to or in custody of a person receiving state or federal
funds as a result of a grant from or contract with an agency
described by Section 328.009 that relate to a program or operation
for which the inspector general has responsibility under this
chapter;
(2) make any investigation or report of the
administration of a program or operation for which the inspector
general has responsibility under this chapter that the inspector
general determines is necessary or appropriate;
(3) have access to information in the custody of or
assistance from any state agency or local government that is
necessary to administer this chapter;
(4) have direct and prompt access to the governor when
necessary for any purpose relating to the administration of this
chapter; and
(5) enter into contracts or make arrangements with
public agencies or private entities or individuals for audits,
studies, analyses, and other services as necessary to administer
this chapter, subject to the General Appropriations Act.
(b) The inspector general may issue subpoenas to compel the
production of information, documents, reports, answers, records,
accounts, papers, or other data and documentary evidence necessary
to administer this chapter. A district court may enforce a subpoena
issued by the inspector general under this chapter.
Sec. 328.011. COMPLAINTS; INFORMATION. (a) The inspector
general, in the administration of this chapter, may receive and
investigate complaints or information concerning the possible
existence of:
(1) mismanagement;
(2) a gross waste of funds;
(3) an abuse of authority;
(4) a violation of law; or
(5) a substantial and specific danger to the public
health and safety.
(b) The inspector general may not disclose the identity of
the person who makes the complaint or provides the information
without that person's consent unless the inspector general
determines that disclosure is unavoidable during the course of the
investigation.
(c) A person who has authority to take, direct others to
take, recommend, or approve any personnel action may not take or
threaten to take any action against another person for making a
complaint or disclosing information to the inspector general,
unless the complaint or disclosure of information was made with the
knowledge that it was false or with wilful disregard for its
veracity.
Sec. 328.012. AUDITS. (a) In conducting an audit under
this chapter, the inspector general shall:
(1) comply with applicable state and federal law; and
(2) conduct the audit in accordance with generally
accepted auditing standards as prescribed by the state auditor, the
Institute of Internal Auditors, and the United States General
Accounting Office.
(b) The inspector general shall establish guidelines for
determining when it is appropriate to require an independent audit
and shall take action necessary to ensure that any audit conducted
by an independent auditor complies with the requirements of
Subsection (a).
Sec. 328.013. COOPERATION WITH OTHER STATE AGENCIES. The
inspector general shall cooperate with the state auditor and the
comptroller in administering this chapter.
Sec. 328.014. REPORT OF VIOLATION OF CRIMINAL LAW.
(a) The inspector general shall promptly report to the attorney
general and to the local attorney representing the state in the
prosecution of felonies if as a result of an audit or investigation
under this chapter the inspector general has reasonable cause to
believe that a violation of state criminal law has occurred.
(b) The inspector general shall promptly report to the
United States district attorney for the appropriate judicial
district if as a result of an audit or investigation under this
chapter the inspector general has reasonable cause to believe that
a violation of federal criminal law has occurred.
Sec. 328.015. REPORT. (a) The inspector general shall
prepare and submit to the governor not later than December 31 of
each even-numbered year a written report that summarizes the
activities of the office of the inspector general during the
preceding two-year period. The report must:
(1) describe any significant problem, abuse, or
deficiency in the administration of a program or operation
disclosed by the inspector general during the reporting period;
(2) describe any corrective action recommended by the
inspector general during the reporting period with respect to a
problem, abuse, or deficiency described by Subdivision (1);
(3) identify each significant recommendation
submitted in a previous report for which corrective action is not
complete;
(4) summarize matters referred to prosecuting
authorities during the reporting period and the disposition of
those matters; and
(5) list each audit report completed by the office
during the reporting period.
(b) Not later than the 30th day after the date of receipt of
a report under Subsection (a), the governor shall send the report to
the presiding officer of each house of the legislature and shall
include with the report any written recommendation the governor
determines is appropriate. On request, the inspector general shall
also make copies of the report available to the public at reasonable
cost.
(c) The inspector general shall immediately report to the
governor on receipt of information indicating a particularly
serious or flagrant problem, abuse, or deficiency relating to the
administration of a program or operation, as determined by the
inspector general. Not later than the seventh day after the date of
receipt of a report under this subsection, the governor shall send
the report to the presiding officer of each house of the legislature
and shall include with the report any written recommendation the
governor determines is appropriate.
SECTION 2. (a) As soon as possible after the effective
date of this Act, but not later than January 1, 2004, the governor
shall appoint an inspector general. The initial term of the
inspector general ends on February 1, 2005.
(b) During the period between the effective date of this Act
and the date the inspector general appointed under Subsection (a)
of this section qualifies for office, any office of internal audits
or internal audit program of an agency described by Section
328.009, Government Code, as added by this Act, continues to keep
the same functions it had under the law as it existed immediately
before the effective date of this Act, and the former law is
continued in effect for that purpose. On the date an inspector
general is appointed and qualifies for office under Subsection (a)
of this section, that inspector general shall assume the functions
of that office of internal audits or internal audit program that are
related to the audit or investigation of a person receiving state or
federal funds as a result of a grant from or contract with the
agency.
SECTION 3. This Act takes effect September 1, 2003.