| TO: | Honorable Patrick M. Rose, Chair, House Committee on Human Services |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3579 by Rose (Relating to the office of inspector general.), As Introduced |
The bill 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. The bill would authorize the OIG to employ peace officers.
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 immediately with a vote of two-thirds of each house; if not, it 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.
| Source Agencies: | 308 State Auditor's Office, 529 Health and Human Services Commission
|
| LBB Staff: | JOB, CL, PP, MB
|