By: Otto (Senate Sponsor - Nichols) H.B. No. 3290
         (In the Senate - Received from the House April 30, 2007;
  May 2, 2007, read first time and referred to Committee on Finance;
  May 17, 2007, reported favorably by the following vote:  Yeas 13,
  Nays 0; May 17, 2007, sent to printer.)
 
 
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.
 
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