LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

March 25, 2007

TO:	Honorable Bill Callegari, Chair, House Committee on Government Reform
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB668 by Dukes (Relating to the office of inspector general.), As Introduced

No significant fiscal implication to the State is anticipated.

House Bill 668 would add a new Subchapter M to Chapter 531 of the Government Code.  The bill would create an independent Office of Inspector General (OIG), administratively attached to the Health and Human Services Commission (HHSC), with authority to investigate fraud, waste, and abuse in the provision or funding of health or human services in Texas.  The inspector general would be appointed by the governor to serve two-year terms and he/she would have subpoena and rulemaking authority. 

An office of inspector general currently exists within the HHSC.  The bill would repeal Section 531.102, Office of Inspector General, in the Government Code and move the OIG to an independent status with an administrative attachment to HHSC.  The bill would take effect September 1, 2007.

The bill is not expected to have a significant fiscal impact.  However, technical concerns have been raised by HHSC, including: 1) the agency assumes no change to the current level of administrative support provided to the OIG; 2) the agency assumes any administrative reductions would apply proportionately to all divisions, including administratively attached entities; 3) since the bill would prohibit HHSC from modifying the OIG's legislative appropriations request, the LBB ABEST system would be modified to accomodate this provision; 4) the requirement to transfer all supporting funds to the OIG would mean only those funds authorized by the appropriations act for transfer by the Executive Commissioner and would not require a separate accounting system or a separate cost allocation plan (some federal funds may not be available for transfer from the operating agency); and 5) certain technology systems would require modifications to support the OIG, but those costs are not estimated at this time.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

301 Office of the Governor, 302 Office of the Attorney General, 303 Building and Procurement Commission, 308 State Auditor's Office, 360 State Office of Administrative Hearings, 529 Health and Human Services Commission

LBB Staff:

JOB, MN, PP, MB, KJG