80R7688 JRD-D
 
  By: Otto H.B. No. 3290
 
A BILL TO BE ENTITLED
AN ACT
relating to expanding the scope of an audit by the state auditor
when the state auditor finds evidence of gross mismanagement.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Chapter 321, Government Code, is amended by
adding Section 321.0161 to read as follows:
       Sec. 321.0161.  GROSS MISMANAGEMENT; EXPANDING SCOPE OF
AUDIT. If in the course of an audit of a state agency or institution
the State Auditor finds evidence of gross mismanagement or grossly
improper management oversight practices, the State Auditor, after
consulting with the head of the agency or institution, shall as soon
as is practicable expand the scope of the audit into other aspects
of the operations of the agency or institution to determine whether
similar problems exist elsewhere.
       SECTION 2.  This Act takes effect September 1, 2007.