79R6440 MXM-F
By: Uresti H.B. No. 2854
A BILL TO BE ENTITLED
AN ACT
relating to the creation of an office of inspector general at
certain state agencies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. SHORT TITLE. This Act may be cited as the Texas
Inspector General Act.
SECTION 2. PURPOSE. The purpose of this Act is to establish
a program of:
(1) investigation, audit, and performance review; and
(2) contract negotiation, evaluation, and monitoring
to:
(A) deter and identify fraud, abuse, and illegal
acts;
(B) provide increased accountability, integrity,
and oversight; and
(C) assist in improving state agency operations.
SECTION 3. OFFICE OF INSPECTOR GENERAL. Subtitle C, Title
10, Government Code, is amended by adding Chapter 2115 to read as
follows:
CHAPTER 2115. TEXAS INSPECTORS GENERAL
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2115.001. DEFINITIONS. In this chapter:
(1) "Agency" means a state agency to which this
chapter applies, as provided by Section 2115.002.
(2) "Inspector general" means an individual appointed
as an inspector general at an agency under this subchapter.
(3) "Presiding officer" means the presiding officer of
the governing body of an agency, or the commissioner of an agency if
a single commissioner presides over the agency.
(4) "Review" includes an audit, inspection,
investigation, or similar activity.
Sec. 2115.002. APPLICABILITY. This chapter applies to the
following state agencies:
(1) Texas Building and Procurement Commission;
(2) Texas Commission on Environmental Quality;
(3) Texas Department of Criminal Justice;
(4) Texas Department of Insurance;
(5) Texas Department of Transportation;
(6) Texas Education Agency;
(7) Texas Higher Education Coordinating Board;
(8) Texas Workers' Compensation Commission; and
(9) Texas Workforce Commission.
[Sections 2115.003-2115.050 reserved for expansion]
SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
Sec. 2115.051. CREATION OF OFFICE OF INSPECTOR GENERAL.
The office of inspector general is created at each agency as
provided by this chapter to:
(1) conduct investigations, audits, evaluations,
inspections, and other reviews; and
(2) monitor contracts in accordance with the
professional standards that relate to the fields of investigation
and auditing in government.
Sec. 2115.052. APPOINTMENT. (a) The governing body of an
agency shall appoint an inspector general to serve in that position
within the agency.
(b) An inspector general serves at the pleasure of the
governing body of the inspector general's agency.
Sec. 2115.053. QUALIFICATIONS. (a) In appointing a person
as inspector general, an agency shall:
(1) consider the person's integrity, capability for
strong leadership, and demonstrated knowledge, skills, abilities,
and experience in investigation, prosecution, management analysis,
public administration, criminal justice administration,
accounting, auditing, financial analysis, audits, law, or other
closely related fields; and
(2) give preference to a person certified as an
inspector general.
(b) An inspector general appointed under this subchapter is
required to obtain certification as an inspector general not later
than a date determined by the appointing agency.
(c) Additional recommended qualifications for appointment
as an inspector general include licenses or certifications as a
lawyer, fraud examiner, public accountant, or internal auditor.
Sec. 2115.054. ORGANIZATION. An inspector general shall
establish an organizational structure for the inspector general's
office that is appropriate to carrying out the responsibilities and
functions of the office.
Sec. 2115.055. INDEPENDENCE OF OFFICE. (a) Except as
provided by Sections 2115.052(b), 2115.054, and 2115.201, an
inspector general operates independently from the agency in which
the inspector general serves.
(b) An executive or legislative state agency may not impair
or prohibit an inspector general from initiating or completing a
review.
[Sections 2115.056–2115.100 reserved for expansion]
SUBCHAPTER C. PERSONNEL
Sec. 2115.101. EMPLOYEES. An inspector general may employ
personnel as necessary to administer the inspector general's
office.
Sec. 2115.102. EXPERTS. (a) An inspector general may
employ or contract with certified public accountants, management
consultants, or other professional experts necessary to
independently perform the functions of the inspector general's
office.
(b) Chapter 2254 does not apply to a person employed or
contracted with under this section.
Sec. 2115.103. PEACE OFFICERS. An inspector general may
employ peace officers.
[Sections 2115.104–2115.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES OF INSPECTOR GENERAL
Sec. 2115.151. GENERAL AUTHORITY. An inspector general may
perform all activities necessary to carry out the functions under
this chapter.
Sec. 2115.152. OPERATION OF OFFICE. An inspector general
may establish policies and procedures to guide the operation of the
inspector general's office.
Sec. 2115.153. PROFESSIONAL STANDARDS. A review conducted
by an office shall conform to professional standards and best
practices for offices of inspector general.
Sec. 2115.154. GENERAL REVIEW AUTHORITY. (a) An inspector
general may monitor and evaluate:
(1) the activities and records of individuals with
contracts, procurements, grants, or agreements with the agency; and
(2) any activity or operation of the agency.
(b) An inspector general may conduct criminal, civil, and
administrative reviews related to the course and scope of the
duties of the inspector general.
(c) An inspector general may review the efficiency and
effectiveness of the operations and functions of the inspector
general's agency and conduct reviews of the agency's performance
measurement system, including the reliability and validity of the
information provided by the system's measures and standards.
Sec. 2115.155. ACCESS UNRESTRICTED. (a) An inspector
general may obtain full and unrestricted access to all offices,
employees, records, reports, contracts, correspondence, and any
other information or materials, including electronic data, of the
inspector general's agency or any other organization or individual
involved with the agency.
(b) The authority provided by this section supersedes any
claim of privilege.
(c) An inspector general may attend any meeting of the
inspector general's agency, including a closed meeting under
Chapter 551.
Sec. 2115.156. COOPERATION REQUIRED. As necessary for a
review under this chapter, an inspector general may request and
compel from any governmental entity in this state cooperation,
assistance, services, and data.
Sec. 2115.157. EMPLOYEE REPORTS. An inspector general may
require employees at the inspector general's agency to report to
the agency's office information regarding fraud, waste, misuse,
corruption, illegal acts, or abuse.
Sec. 2115.158. COMPLAINTS. An inspector general may
receive and investigate complaints on the inspector general's own
initiative or from any source concerning alleged abuse, fraud, or a
service deficiency, including a deficiency in the operation and
maintenance of a facility.
Sec. 2115.159. SUBPOENA. (a) An inspector general may
subpoena witnesses or any records or other documents, including
electronic data, necessary for a review conducted by the inspector
general's office.
(b) If the person to whom a subpoena is directed under this
section fails to comply, an inspector general may request the
attorney general to bring suit in district court to enforce the
subpoena. If the court determines that good cause exists for the
issuance of the subpoena, the court shall order compliance. The
court may modify the requirements of a subpoena that the court
determines are unreasonable. Failure to comply with the order of
the district court is punishable as contempt.
Sec. 2115.160. INTERNAL AUDITOR. (a) An inspector general
may exercise the powers granted to an internal auditor under
Chapter 2102.
(b) Section 2102.007(a)(1) does not apply to an internal
auditor of an agency. The internal auditor of the agency under
Chapter 2102 shall report to the inspector general.
Sec. 2115.161. COOPERATION WITH LAW ENFORCEMENT OFFICIALS
AND OTHER ENTITIES. (a) An inspector general may provide
information and evidence relating to criminal acts to the
appropriate law enforcement officials.
(b) An inspector general may refer matters for further
civil, criminal, and administrative action to appropriate
administrative and prosecutorial agencies, including the attorney
general.
(c) An inspector general may conduct a joint review or other
project with other appropriate agencies.
Sec. 2115.162. PREVENTION. An inspector general may engage
in prevention activities, including the review of legislation,
rules, policies, procedures, transactions, training, and
education.
Sec. 2115.163. REMEDIATION; MONITORING. (a) An inspector
general may recommend remedial actions to be taken by the inspector
general's agency to overcome or correct a deficiency or
inefficiency identified by the inspector general's office.
(b) An inspector general may monitor implementation of
recommendations made by the inspector general's office and other
audit agencies for compliance.
Sec. 2115.164. RULEMAKING AUTHORITY. (a) An agency shall
adopt rules to respond to reports and referrals from the agency's
inspector general, including sanctions for violations.
(b) The rules shall include due process for referrals and
findings that might result in administrative penalties.
[Sections 2115.165-2115.200 reserved for expansion]
SUBCHAPTER E. OVERSIGHT OF INSPECTOR GENERAL; REPORTS
Sec. 2115.201. ORGANIZATION PLACEMENT. An inspector
general reports to the presiding officer of the inspector general's
agency.
Sec. 2115.202. ANNUAL EVALUATION. An agency's presiding
officer shall conduct an annual evaluation of the agency's
inspector general.
Sec. 2115.203. ALLEGATIONS OF MISCONDUCT AGAINST PRESIDING
OFFICER. If allegations of misconduct by a presiding officer
result in an investigation by an inspector general, the inspector
general shall report to the governor during the investigation until
the report is completed or the investigation is closed without a
finding.
Sec. 2115.204. REPORTING OFFICE ACTIVITIES. An inspector
general shall report the findings of the inspector general's office
to:
(1) the presiding officer of the inspector general's
agency;
(2) the governor;
(3) the lieutenant governor;
(4) the speaker of the house of representatives; and
(5) appropriate law enforcement and prosecutorial
agencies, if the findings relate to a criminal investigation.
Sec. 2115.205. FLAGRANT VIOLATIONS; IMMEDIATE REPORT. An
inspector general shall immediately report to the presiding officer
of the inspector general's agency and the governor's general
counsel a particularly serious or flagrant problem relating to the
administration of a program or operation of the agency or
interference with an inspector general operation.
[Sections 2115.206-2115.250 reserved for expansion]
SUBCHAPTER F. PUBLIC RECORDS; EXCEPTIONS
Sec. 2115.251. INFORMATION CONFIDENTIAL. (a) Except as
provided by this section and Section 2115.252, all information and
material compiled by an inspector general during an investigation
or audit under this chapter is:
(1) confidential and not subject to disclosure under
Chapter 552; and
(2) not subject to disclosure, discovery, subpoena, or
other means of legal compulsion for release to anyone other than the
office or its agents involved in the investigation related to that
information or material.
(b) As an inspector general determines appropriate,
information relating to an investigation or audit may be disclosed
to:
(1) a law enforcement agency; or
(2) the attorney general.
(c) A person that receives information under Subsection (b)
may not disclose the information except to the extent that
disclosure is consistent with the authorized purpose for which the
person first obtained the information.
Sec. 2115.252. FINAL AUDIT AND INVESTIGATION REPORTS. (a)
An inspector general's final investigation and audit reports are
subject to disclosure under Chapter 552.
(b) All working papers and other documents related to
compiling the final audit and investigation reports remain
confidential and are not subject to disclosure under Chapter 552.
[Sections 2115.253-2115.300 reserved for expansion]
SUBCHAPTER G. FINANCIAL PROVISIONS
Sec. 2115.301. BUDGET. An inspector general shall submit a
budget to the presiding officer of the inspector general's agency.
Sec. 2115.302. COSTS. (a) An inspector general may
maintain information regarding the cost of investigations.
(b) An inspector general may cooperate with appropriate
administrative and prosecutorial agencies in recovering costs
incurred under this chapter from nongovernmental entities,
including contractors or individuals involved in violations of
state and federal rules, statutes, or abusive or wilful misconduct.
SECTION 4. INTERNAL AUDITOR. Section 2102.007(a),
Government Code, is amended to read as follows:
(a) The internal auditor shall:
(1) report directly, except as provided by Chapter
2115, to the state agency's governing board or the administrator of
the state agency if the state agency does not have a governing
board;
(2) develop an annual audit plan;
(3) conduct audits as specified in the audit plan and
document deviations;
(4) prepare audit reports;
(5) conduct quality assurance reviews in accordance
with professional standards as provided by Section 2102.011 and
periodically take part in a comprehensive external peer review;
and
(6) conduct economy and efficiency audits and program
results audits as directed by the state agency's governing board or
the administrator of the state agency if the state agency does not
have a governing board.
SECTION 5. EFFECTIVE DATE. This Act takes effect September
1, 2005.