By: Delisi (Senate Sponsor - Williams) H.B. No. 905
(In the Senate - Received from the House May 5, 2005;
May 8, 2005, read first time and referred to Committee on Finance;
May 18, 2005, reported favorably by the following vote: Yeas 12,
Nays 0; May 18, 2005, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of the state auditor in connection
with state contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 321.020(a), Government Code, is amended
to read as follows:
(a) Notwithstanding any other law, a state agency, or a
corporation that is dedicated to the benefit of a state agency and
that meets the criteria specified by Section B, Article 2.23B,
Texas Non-Profit Corporation Act (Article 1396-2.23B, Vernon's
Texas Civil Statutes), may employ a private auditor to audit the
state agency or corporation only if:
(1) the agency or corporation is authorized to
contract with a private auditor [do so by law or] through a
delegation of authority from the state auditor;
(2) the scope of the proposed audit has been submitted
to the state auditor for review and comment; and
(3) the services of the private auditor are procured
through a competitive selection process in a manner allowed by law.
SECTION 2. Section 2262.002, Government Code, is amended to
read as follows:
Sec. 2262.002. EXEMPTIONS. (a) Except as otherwise
provided, this [This] chapter does not apply to an institution of
higher education as defined by Section 61.003, Education Code.
(b) Except as otherwise provided, this [This] chapter does
not apply to contracts of the Texas Department of Transportation
that relate to highway construction or highway engineering.
SECTION 3. Section 2262.003, Government Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) Each state agency shall include in each of its contracts
a term that provides that:
(1) the state auditor may conduct an audit or
investigation of any entity receiving funds from the state directly
under the contract or indirectly through a subcontract under the
contract; [and]
(2) acceptance of funds directly under the contract or
indirectly through a subcontract under the contract acts as
acceptance of the authority of the state auditor, under the
direction of the legislative audit committee, to conduct an audit
or investigation in connection with those funds; and
(3) an entity that is the subject of an audit or
investigation by the state auditor must provide the state auditor
with access to any information the state auditor considers relevant
to:
(A) evaluating the entity's performance under
the contract or subcontract;
(B) determining the state's rights or remedies
under the contract; or
(C) evaluating whether the entity has acted in
the best interest of the state.
(c) This section applies to all state agency contracts,
including contracts of:
(1) an institution of higher education, as that term
is defined by Section 61.003, Education Code; and
(2) the Texas Department of Transportation that relate
to highway construction or highway engineering.
SECTION 4. The change in law made by this Act to Section
321.020(a), Government Code, applies only to a contract that is
entered into, amended, extended, or renewed on or after the
effective date of this Act.
SECTION 5. 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, 2005.
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