TO: | Honorable Kenny Marchant, Chair, House Committee on State Affairs |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | SB1059 by Ellis, Rodney (Relating to corporate ethics and integrity; providing penalties.), As Engrossed |
The bill creates a corporate integrity unit at the Office of the Attorney General to assist district attorneys, county attorneys, state agencies with investigation, prosecution and administrative enforcement of corporate fraud investigations and other similar illegal activities and serve as a state clearinghouse for such information. The bill requires a contractor with a state contract in excess of $25,000 to provide the contracting state agency with a certified audit and immediately disclose financial irregularities to the contracting state agency. The bill requires (a) state agencies that manage or invest state funds to adopt rules specifying standards of conduct for financial advisors or service providers who are not state employees, (b) the filing of annual financial statements by financial advisors or service providers, (c) the disclosure of relationships that might affect the advice or service provided, and (d) corporate officials must certify the information in financial statements of the corporation. Failure to report any financial irregularities is a class A misdemeanor and failure to submit a certified audit of the company’s operations may result in a civil penalty not to exceed $25,000.
Source Agencies: | 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 307 Secretary of State, 308 State Auditor's Office, 323 Teacher Retirement System, 327 Employees Retirement System, 701 Central Education Agency
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LBB Staff: | JK, RR, GO, MS, BL
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