By: Dunnam H.B. No. 2942

A BILL TO BE ENTITLED

AN ACT

relating to fiscal accountability and transparency in government operations by providing for effective legislative oversight.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. SHORT TITLE

SECTION 1.01. This Act may be cited as the "Texas Government Accountability and Transparency Act of 2009."

ARTICLE 2. STATE AUDITOR AND FISCAL RESPONSIBILITY OFFICE

SECTION 2.01. The chapter heading to Chapter 321, Government Code, is amended to read as follows:

CHAPTER 321. TEXAS FISCAL RESPONSIBILITY OFFICE AND STATE AUDITOR

SECTION 2.02. Chapter 321, Government Code, is amended by designating Sections 321.001-321.012 as Subchapter A and adding a heading for Subchapter A to read as follows:

SUBCHAPTER A. GENERAL PROVISIONS

SECTION 2.03. Subchapter A, Chapter 321, Government Code, as added by this Act, is amended by adding Section 321.0005 to read as follows:

Sec. 321.0005. FINDING AND PURPOSE. (a) The Legislature finds that the public's confidence in their government is highest when there is adequate oversight of government spending and performance by an independent agency that answers to the people's elected representatives.

(b) The purpose of this chapter is to ensure that the State Auditor and the Texas Fiscal Responsibility Office are able to provide the highest level of oversight of government spending and performance to ensure the utmost in government economy and efficiency.

SECTION 2.04. Section 321.001, Government Code, is amended by amending Subdivisions (1) and (3) and adding Subdivision (4-a) to read as follows:

(1) "Audit plan" means the outline of work [approved by the committee] for the office [State Auditor's Office] in a year for the performance of audits and related services, including technical assistance, data analysis, consulting and oversight functions, investigations, and the preparation of audit reports and other types of communications.

(3) "Board" ["Committee"] means the Legislative Audit Board [legislative audit committee].

(4-a) "Office" means the Texas Fiscal Responsibility Office.

SECTION 2.05. Subchapter A, Chapter 321, Government Code, as added by this Act, is amended by adding Sections 321.0011 and 321.0014 to read as follows:

Sec. 321.0011. TEXAS FISCAL RESPONSIBILITY OFFICE; HEAD OF OFFICE. The Texas Fiscal Responsibility Office is an independent agency of the legislative branch of state government.

Sec. 321.0014. APPLICABILITY TO CERTAIN ENTITIES. This chapter applies to the following entities in the same manner as a department:

(1) an independent organization certified by the Public Utility Commission of Texas under Section 39.151, Utilities Code;

(2) a regional mobility authority;

(3) the Texas Economic Development Corporation;

(4) a nonprofit organization that is established by a state officer, agency, board, commission, or department and that solicits gifts, grants, and other donations for the Texas Enterprise Fund under Section 481.078;

(5) a nonprofit organization that is established by a state officer, agency, board, commission, or department and that solicits gifts, grants, and other donations; and

(6) any public or private person or entity receiving funds made available by or provided under the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5).

Sec. 321.0015. REFERENCES IN OTHER LAW. (a) A reference in law to the state auditor's office means the Texas Fiscal Responsibility Office.

(b) A reference in law to the legislative audit committee means the Legislative Audit Board.

SECTION 2.06. Sections 321.002 and 321.004, Government Code, are amended to read as follows:

Sec. 321.002. LEGISLATIVE AUDIT BOARD [COMMITTEE]. (a) The Legislative Audit Board [legislative audit committee] consists of:

(1) the lieutenant governor;

(2) the speaker of the house of representatives;

(3) the chairman of the senate finance committee;

(4) four other members [one member] of the senate appointed by the lieutenant governor;

(5) the chairman of the house appropriations committee; [and]

(6) the chairman of the house ways and means committee; and

(7) three other members of the house appointed by the speaker.

(b) In the absence of the chairman of a house or senate committee, the vice-chairman of the respective committee shall act.

(c) Member's of the board [committee] serve without compensation but are entitled to actual and necessary expenses incurred in performing official duties.

(d) The board [committee] shall employ necessary clerical assistants as allowed by legislative appropriation.

(e) The lieutenant governor and the speaker are joint chairs of the board [committee]. [The committee shall elect one member to serve as secretary.]

Sec. 321.004. MEETINGS; QUORUM; PROCEDURE FOR TIE VOTE. (a) Except as provided by Subsection (b), a majority of the members of the board from each house constitutes a quorum to transact business. If a quorum is present, the board may act on any matter that is within its jurisdiction by a majority vote.

(b) Two members of the board from each house constitutes a quorum for the taking of testimony and receiving evidence.

(c) The board shall meet as often as necessary to perform its duties. Meetings may be held at any time at the request of either of the joint chairs of the board or on written petition of two of the members of the board from each house.

(c-1) Beginning July 1, 2009, the board shall meet at least once each month in Austin to take testimony and receive evidence related to funds received by the state from the Federal government for economic stabilization, including funds received under the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5). This subsection expires January 1, 2011.

(d) The board shall meet in Austin, except that if a majority of the members of the board from each house agree, the board may meet in any location determined by the board.

(e) Each member of the legislature is entitled to attend and present his views in any meeting of the board, except that a legislator who is not a member of the board may not vote.

(f) As an exception to Chapter 551 and other law, if a meeting is located in Austin and the joint chairs of the board are physically present at the meeting, then any number of the other members of the board may attend the meeting by use of telephone conference call, video conference call, or other similar telecommunication device. This subsection applies for purposes of constituting, for a quorum, for purposes of voting, and for any other purpose allowing a member of the board to otherwise fully participate in any meeting of the board. This subsection applies without exception with regard to the subject of the meeting or topics considered by the members.

(g) A meeting held by use of telephone conference call, video conference call, or other similar telecommunication device:

(1) is subject to the notice requirements applicable to other meetings;

(2) must specify in the notice of the meeting the location in Austin of the meeting at which the joint chairs will be physically present;

(3) must be open to the public and shall be audible to the public at the location in Austin specified in the notice of the meeting as the location of the meeting at which the joint chairs will be physically present; and

(4) must provide two-way audio communication between all members of the board attending the meeting during the entire meeting, and if the two-way audio communication link with any member attending the meeting is disrupted at any time, the meeting may not continue until the two-way audio communication link is reestablished.

(f) If the full board [committee] is present and is not able to resolve a tie vote within a reasonable time on a matter this chapter requires the committee to decide, the board [committee] shall select a member of the house or senate to meet with the board [committee] and to cast the tie-breaking vote.

(g) [(b)] The thirteenth [seventh] member's duty to the board [committee] ends when the member casts the tie-breaking vote and the matter is resolved.

SECTION 2.07. Subchapter A, Chapter 321, Government Code, as added by this Act, is amended by adding Section 321.003 to read as follows:

Sec. 321.003. SUNSET PROVISION. The office and the board are subject to review under Chapter 325 (Texas Sunset Act), but is not abolished under that chapter. The office and board shall be reviewed during the periods in which state agencies abolished in 2013 and every 12th year after that year are reviewed.

SECTION 2.08. Section 321.005, Government Code, is amended to read as follows:

Sec. 321.005. [APPOINTMENT OF] STATE AUDITOR; APPOINTMENT. (a) The State Auditor is the office's chief executive and administrative officer. The State Auditor shall:

(1) administer and enforce this chapter;

(2) [The committee shall appoint a State Auditor to] investigate all custodians of state funds, disbursing agents, and department personnel;

(3) investigate fraud or abuse in all departments, including misuse of funds, conflicts of interest, contract abuses, and other violations of law;

(4) monitor the compliance of all departments with the applicable laws relating to the powers, duties, and functions of the departments;

(5) refer criminal matters as appropriate to the district attorney of Travis County or the prosecuting attorney of the county in which an offense is alleged to have occurred;

(6) refer civil matters as appropriate to the attorney general, the district attorney of Travis County, or the prosecuting attorney of the county in which an offense is alleged to have occurred; and

(6) perform all other duties and exercise all other powers granted to the office or the State Auditor by this chapter or any other law.

(b) The board [committee] shall appoint the State Auditor. The joint chairs of the board shall execute a written declaration of the person appointed by the board as State Auditor and file the declaration with the secretary of state.

(c) The State Auditor serves at the will of the board [committee]. The State Auditor is ineligible to be a candidate for a public elective office in this state, unless the State Auditor has resigned and the board has accepted the resignation.

(d) The board [committee] shall fill any vacancy in the office of State Auditor.

(e) A majority vote of the board [committee] members is sufficient to exercise any action authorized by this section.

SECTION 2.09. Subchapter A, Chapter 321, Government Code, as added by this Act, is amended by amending Sections 321.010 and 321.011 and adding Sections 321.0101-321.0102 to read as follows:

Sec. 321.010. FIRST ASSISTANT STATE AUDITOR. (a) The State Auditor shall [may] appoint a first assistant state auditor with the approval of the board.

(b) The first assistant state auditor shall:

(1) perform the duties and assignments prescribed by the State Auditor; and

(2) act as the State Auditor when the State Auditor is absent.

Sec. 321.0101. COUNSELLOR; ADVISORY OPINIONS. (a) The State Auditor shall appoint a counsellor.

(b) The counsellor must be an attorney licensed to practice law in this state.

(c) The counsellor may issue advisory opinions under procedures approved by the State Auditor relating to the appropriate use of and authority to spend state funds.

Sec. 321.0102. CHIEF CLERK. The State Auditor may appoint a chief clerk to receive, file, and carefully preserve all documents and records provided to the State Auditor and the office and to serve as secretary to the board.

Sec. 321.011. PERSONNEL. (a) Subject to the General Appropriations Act or other law, the [The] State Auditor shall appoint assistant state auditors [may employ a professional staff, including assistant auditors] and may employ [stenographic and clerical] personnel as necessary to carry out the powers and duties of the State Auditor and the office under this chapter and other laws granting jurisdiction or applicable to the State Auditor or the office.

(b) The State Auditor shall establish the qualifications necessary for appointment or employment. A person appointed or employed must have the experience necessary to qualify the person for the position. The State Auditor may conduct professional examinations to determine the qualifications of a person seeking appointment or employment [prospective staff members].

(c) The State Auditor may discharge any assistant state auditors or other [stenographic or clerical] personnel at any time for any reason satisfactory to the State Auditor and without a hearing.

(d) The State Auditor and office personnel [staff] are to be free from partisan politics, and the State Auditor is free to select the most efficient personnel available for each position in the [his] office so that the State Auditor may render to the legislature the service the legislature has a right to expect.

(e) It is against public policy and illegal for a member of the legislature, an officer or employee of the state, or an officer or employee of a state department to recommend or suggest that the State Auditor appoint a person to a position in the office [on the state auditor's staff]. An offense under this section is a Class A misdemeanor.

Sec. 321.012. EXPENDITURES AND SALARIES. (a) The board [committee] directs and controls the expenditure of any money appropriated to the office of the State Auditor and must approve the State Auditor's appropriation requests and must review the audit plan.

(b) Before payment may be made on a voucher issued for payment of the salaries and expenses of the office, the State Auditor must approve the voucher.

(c) The salaries of the assistant auditors and other [stenographic and clerical] personnel may not exceed the amounts paid by other departments for similar services without the approval of the board.

(d) Salaries shall be paid monthly.

SECTION 2.10. Subchapter A, Chapter 321, Government Code, as added by this Act, is amended by adding Sections 321.0121-321.012 to read as follows:

Sec. 321.0121. PUBLIC INTEREST INFORMATION. (a) The office shall prepare information of public interest describing:

(1) the functions of the office, including the functions of the state auditor;

(2) the matters or issues that may be subject to audits, investigations, and other functions performed by the office; and

(3) the manner in which a person may report an allegation of fraud or abuse to the office.

(b) The office shall make the information described by Subsection (a) available to state officers and employees, and to the public.

Sec. 321.0122. REQUIRED CONTRACT DISCLOSURE STATEMENT. (a) The office shall develop a standard contract provision requiring a contractor to disclose to the office the amount of a payment made under the contract to any subcontractor, consultant, or person required to register as a lobbyist under Chapter 305 or the Lobbying Disclosure Act of 1995 (2 U.S.C. Section 1601 et seq.).

(b) A department shall include the provision in any contract entered into by the department.

Sec. 321.0123. CONTRACT REPORTING REQUIREMENTS. A department that is required under other law to report information relating to a contract entered into by the department to the Legislative Budget Board shall also report the information to the office.

Sec. 321.0124. POSTING OF CONTRACT INFORMATION ON INTERNET. (a) The office shall post any information received by the office that relates to a contract entered into by a department on an Internet site maintained by or for the office. The office shall post the information in a timely manner after receipt of the information.

(b) The Internet site must be accessible to the public.

SECTION 2.11. Section 321.023, Government Code, is redesignated as Section 321.009, Government Code, and amended to read as follows:

Sec. 321.009 [321.023]. SEAL. The [state auditor shall obtain a] seal of the office is [with "State Auditor, State of Texas" engraved around the margin and] a five-pointed star in the center with the words "Texas Fiscal Responsibility Office, State of Texas" engraved around the margin. The seal shall [to] be used to authenticate official documents issued by the state auditor.

SECTION 2.12. Chapter 321, Government Code, is amended by designating Sections 321.013-321.022 as Subchapter B and adding a heading for Subchapter B to read as follows:

SUBCHAPTER B. AUDITS AND INVESTIGATIONS

SECTION 2.13. The heading for Section 321.013 and Subsections (a), (c), and (f) of that section, Government Code, are amended to read as follows:

Sec. 321.013. ADDITIONAL POWERS AND DUTIES OF STATE AUDITOR (a) The State Auditor shall conduct audits of all departments, including institutions of higher education, as specified in the audit plan. [At the direction of the committee,] The [the] State Auditor [shall] may conduct an audit or investigation of any entity receiving funds from the state.

(c) The State Auditor shall [recommend the] prepare an audit plan for the state for each year [to the committee]. In devising the plan, the State Auditor shall consider recommendations concerning coordination of agency functions made jointly by representatives of the Legislative Budget Board, Sunset Advisory Commission, and [State Auditor's Office] the office. The State Auditor shall also consider the extent to which a department has received a significant increase in appropriations, including a significant increase in federal or other money passed through to the department, and shall review procurement activities for compliance with Section 2161.123. The plan shall provide for auditing of federal programs at least as often as required under federal law and shall ensure that audit requirements of all bond covenants and other credit or financial agreements are satisfied. The committee shall review [and approve] the plan.

(f) The State Auditor may conduct financial audits, compliance audits and investigations, [and, with specific authority from the committee,] economy and efficiency audits, effectiveness audits, and special audits as defined by this chapter and specified in the audit plan.

SECTION 2.14. Section 321.016, Government Code, is amended to read as follows:

Sec. 321.016. IMPROPER PRACTICES AND ILLEGAL TRANSACTIONS. (a) If in the course of an audit the State Auditor finds evidence of improper practices of financial administration, inadequate fiscal records, uneconomical use of resources, or ineffective program performance, the State Auditor, after consulting with the head of the agency, shall immediately report the evidence to the governor, the board [committee], the chairmen of the committees of each house with oversight responsibility for the agency, and the administrative head and the chairman of the governing body of the affected department.

(b) If in the course of an audit the State Auditor finds evidence of an illegal transaction, the State Auditor, after consulting with the head of the agency, shall immediately report the transaction to the governor, the board [committee], the chairmen of the committees of each house with oversight responsibility for the agency, to the district attorney of Travis County or the prosecuting attorney of the county in which an offense is alleged to have occurred, and any other [the] appropriate legal authority.

(c) Immediately after the committee receives a report from the State Auditor alleging improper practices of financial administration, uneconomical use of resources, or ineffective program performance, the board [committee] shall review the report and shall consult with and may hold hearings with the administrative head and the chairman of the governing body of the affected department regarding the report.

(d) If the administrative head or the governing body of the affected department refuses to make the changes recommended by the board [committee] at the hearing or provide any additional information or reports requested, the board [committee] shall report the refusal to the legislature.

SECTION 2.15. Subchapter A, Government Code, as added by this Act, is amended by amending Sections 321.018 and 321.019 and adding Section 321.0191 to read as follows:

Sec. 321.018. SUBPOENAS. (a) The [At the request of the] State Auditor or the board on its own motion[, the committee] may subpoena witnesses or any books, records, or other documents reasonably necessary to conduct an examination under this chapter.

(b) Each subpoena must be signed by either:

(1) the State Auditor; or

(2) one of the joint chairs of the board [committee or the secretary of the committee].

(c) On the request of either the State Auditor or one of the joint chairs of the board [committee or the secretary of the committee], the sergeant at arms or an assistant sergeant at arms of either house of the legislature or any peace officer shall serve the subpoena in the manner prescribed for service of a district court subpoena.

(d) If the person to whom a subpoena is directed fails to comply, the State Auditor or the board [committee] may 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.

(e) The State Auditor or the board [committee] may provide for the compensation of subpoenaed witnesses. The amount of compensation may not exceed the amount paid to a witness subpoenaed by a district court in a civil proceeding.

Sec. 321.019. INTERFERENCE WITH AUDIT OR INVESTIGATION; CRIMINAL OFFENSE. (a) An officer or employee of this state or of an entity subject to audit or investigation by the state auditor commits an offense if the officer or employee:

(1) refuses to immediately permit the State Auditor to examine or have access to the books, accounts, reports, vouchers, papers, documents, or electronic data to which the State Auditor is entitled under Section 321.013(e) or other law, or to the cash drawer, or cash from the officer's or employee's department;

(2) interferes with an examination by the State Auditor; or

(3) refuses to make a report required by this chapter.

(b) An offense under this section is a Class A misdemeanor, except that that an offense under Subsection (a) is a felony of the third degree if the audit or investigation is related to funds made available by or provided under the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5).

(c) An offense under this section may be prosecuted in the county in which an element of the offense occurs or in Travis County.

Sec. 321.0191. REQUEST FOR INFORMATION; CIVIL PENALTY. (a) The State Auditor may serve upon the officer or employee of any agency or entity written requests for information or inspection of property. A request under this section shall identify with reasonable particularity the information, documents or material sought. A request seeking inspection of documents or property shall describe with reasonable particularity the documents to be produced or the property to which access is requested, and shall set forth the items to be inspected by individual item or by category.

(b) An officer or employee who does not produce the documents or grant access to the property not later than 24 hours after the request is served is personally liable to the state for a civil penalty of $1,000 for each day the conduct continues, except that the civil penalty is $5,000 for each day the conduct continues if the audit or investigation is related to funds made available by or provided under the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5).

(c) The attorney general, the district attorney of Travis County, or the prosecuting attorney of the county in which an violation is alleged to have occurred may sue to collect the penalty.

SECTION 2.16. Subchapter B, Chapter 321, as added by this Act, is amended by adding Sections 321.020-321.027 to read as follows:

Sec. 321.023. GOVERNMENT ACCOUNTABILITY RECOMMENDATIONS. The office shall recommend policies for:

(1) the detection of fraud and abuse, including state contract violations, conflicts of interest, and the inappropriate use or unauthorized expenditure of state funds;

(2) the identification of participants in any detected fraud or abuse;

(3) the termination or prosecution of state employees in relation to detected fraud or abuse; and

(4) the exclusion of contractors from participation in state contracts for detected fraud or abuse.

Sec. 321.024. RECEIPT AND INVESTIGATION OF COMPLAINTS AND INFORMATION. (a) The State Auditor may receive and investigate complaints and information concerning the possible existence of fraud or abuse.

(b) The State Auditor shall establish and operate a toll- free telephone line known as the Texas Government Accountability Hotline that enables a person to call the hotline number to:

(1) obtain information concerning audits or investigations conducted by the office; or

(2) report an alleged violation of the laws of this state related to government accountability, including laws related to spending, procurement, and auditing, by any agency or entity that may be audited or investigated by the State Auditor.

(c) The State Auditor shall establish an Internet page that permits a person to obtain any information a person may obtain from or report any violation a person may report to the hotline.

(d) Each agency or entity that may be audited or investigated by the State Auditor that maintains one or more Internet pages shall post on the home page a prominent link to the Internet page maintained by the State Auditor under this section.

Sec. 321.025. LEGAL ASSISTANCE. On request of the State Auditor, the district attorney of Travis County or the prosecuting attorney of the county in which an offense is alleged to have occurred shall assist the State Auditor with investigations and provide appropriate legal assistance.

Sec. 321.026. LEGAL REFERRAL. (a) After an investigation of possible fraud or abuse, if the State Auditor believes that fraud or abuse by a department may have resulted in the inappropriate use or unauthorized expenditure of state funds, the office may refer the matter to the district attorney of Travis County or the prosecuting attorney of the county in which an offense is alleged to have occurred and recommend that the appropriate district attorney pursue the recovery of state funds.

(b) After receiving a referral from the office under this section, the district attorney of Travis County or the prosecuting attorney of the county in which an offense is alleged to have occurred shall review the request, make an independent decision, and issue a written public opinion with respect to the existence of fraud or abuse and whether the district attorney pursue the recovery of state funds.

Sec. 321.027. LEGAL REFERRAL RELATED TO RECOVERY ACT MATTERS. (a) Notwithstanding any other provision of law, a matter referred by the State Auditor concerning fraud or other criminal activity in connection with Recovery Act funds may be prosecuted in the county in which an element of the offense occurs or in Travis County.

(b) As used in this section, "Recovery Act" means the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5).

SECTION 8. Sections 322.015, 322.016, 322.0165, 322.017, and 322.018, Government Code, are transferred to Chapter 321, Government Code, redesignated as Subchapter C, Chapter 321, Government Code, and amended with the addition of a subchapter heading to read as follows:

SUBCHAPTER C. PERFORMANCE REVIEWS

Sec. 321.051 [322.015]. REVIEW OF INTERSCHOLASTIC COMPETITION. The office [board] may periodically review and analyze the effectiveness and efficiency of the policies, management, fiscal affairs, and operations of an organization that is a component or part of a state agency or institution and that sanctions or conducts interscholastic competition. The office [board] shall report the findings to the governor and the legislature. The legislature may consider the office's [board's] reports in connection with the legislative appropriations process.

Sec. 321.052 [322.016]. PERFORMANCE REVIEW OF SCHOOL DISTRICTS. (a) The office [board] may periodically review the effectiveness and efficiency of the operations of school districts, including the district's expenditures for its officers' and employees' travel services. A review of a school district may be initiated by the office [board] at the State Auditor's [its] discretion or on the request of the school district. A review may be initiated by a school district only by resolution adopted by a majority of the members of the board of trustees of the district.

(b) If a review is initiated on the request of the school district, the district shall pay 25 percent of the cost incurred in conducting the review.

(c) The office [board] shall:

(1) prepare a report showing the results of each review conducted under this section;

(2) file the report with the school district, the governor, the lieutenant governor, the speaker of the house of representatives, the chairs of the standing committees of the senate and the house of representatives with jurisdiction over public education, and the commissioner of education; and

(3) make the entire report and a summary of the report available to the public on the Internet.

(d) Until the office [board] has completed a review under this section, all information, documentary or otherwise, prepared or maintained in conducting the review or preparing the review report, including intra-agency and interagency communications and drafts of the review report or portions of those drafts, is excepted from required public disclosure as audit working papers under Section 552.116. This subsection does not affect whether information described by this subsection is confidential or excepted from required public disclosure under a law other than Section 552.116.

Sec. 321.053 [322.0165]. PERFORMANCE REVIEW OF INSTITUTIONS OF HIGHER EDUCATION. (a) In this section, "public junior college" and "general academic teaching institution" have the meanings assigned by Section 61.003, Education Code.

(b) The office [board] may periodically review the effectiveness and efficiency of the budgets and operations of:

(1) public junior colleges; and

(2) general academic teaching institutions.

(c) A review under this section may be initiated by the office [board] or at the request of:

(1) the governor; or

(2) the public junior college or general academic teaching institution.

(d) A review may be initiated by a public junior college or general academic teaching institution only at the request of the president of the college or institution or by a resolution adopted by a majority of the governing body of the college or institution.

(e) If a review is initiated by a public junior college or general academic teaching institution, the college or institution shall pay 25 percent of the cost incurred in conducting the review.

(f) The office [board] shall:

(1) prepare a report showing the results of each review conducted under this section;

(2) file the report with:

(A) the chief executive officer of the public junior college or general academic teaching institution that is the subject of the report; and

(B) the governor, the lieutenant governor, the speaker of the house of representatives, the chairs of the standing committees of the senate and of the house of representatives with primary jurisdiction over higher education, and the commissioner of higher education; and

(3) make the entire report and a summary of the report available to the public on the Internet.

(g) Until the office [board] has completed a review under this section, all information, documentary or otherwise, prepared or maintained in conducting the review or preparing the review report, including intra-agency and interagency communications and drafts of the review report or portions of those drafts, is excepted from required public disclosure as audit working papers under Section 552.116. This subsection does not affect whether information described by this subsection is confidential or excepted from required public disclosure under a law other than Section 552.116.

Sec. 321.054 [322.017]. EFFICIENCY REVIEW OF STATE AGENCIES. (a) In this section, "state agency" has the meaning assigned by Section 2056.001.

(b) The office [board] periodically may review and analyze the effectiveness and efficiency of the policies, management, fiscal affairs, and operations of state agencies.

(c) The office [board] shall report the findings of the review and analysis to the governor and the legislature.

(d) The legislature may consider the office's [board's] reports in connection with the legislative appropriations process.

(e) Until the office [board] has completed a review and analysis under this section, all information, documentary or otherwise, prepared or maintained in conducting the review and analysis or preparing the review report, including intra-agency and interagency communications and drafts of the review report or portions of those drafts, is excepted from required public disclosure as audit working papers under Section 552.116. This subsection does not affect whether information described by this subsection is confidential or excepted from required public disclosure under a law other than Section 552.116.

Sec. 321.055 [322.018]. RECORDS MANAGEMENT REVIEW. (a) In this section, "state agency" has the meaning assigned by Section 2056.001.

(b) The office [board] may periodically review and analyze the effectiveness and efficiency of the policies and management of a state governmental committee or state agency that is involved in:

(1) analyzing and recommending improvements to the state's system of records management; and

(2) preserving the essential records of this state, including records relating to financial management information.

ARTICLE 2. LEGISLATIVE BUDGET BOARD

SECTION 2.01. Section 322.001(a), Government Code, is amended to read as follows:

Sec. 322.001. MEMBERSHIP. (a) The Legislative Budget Board consists of:

(1) the lieutenant governor;

(2) the speaker of the house of representatives;

(3) the chairman of the senate finance committee;

(4) the chairman of the house appropriations committee;

(5) the chairman of the house ways and means committee;

(6) five [three] members of the senate appointed by the lieutenant governor; and

(7) four [two] other members of the house appointed by the speaker.

SECTION 2.02. Chapter 322, Government Code, is amended by adding Section 322.002 to read as follows:

Sec. 321.002. SUNSET PROVISION. The board is subject to review under Chapter 325 (Texas Sunset Act), but is not abolished under that chapter. The board shall be reviewed during the periods in which state agencies abolished in 2013 and every 12th year after that year are reviewed.

SECTION 2.03. Section 322.003, Government Code, is amended by amending Subsections (a) and (b) and adding Subsections (a-1), (b-1), and (c-1) to read as follows:

Sec. 322.003. QUORUM; MEETINGS. (a) Except as provided by Subsection (a-1), a [A] majority of the members of the board from each house constitutes a quorum to transact business. If a quorum is present, the board may act on any matter that is within its jurisdiction by a majority vote.

(a-1) Two members of the board from each house constitutes a quorum for the taking of testimony and receiving evidence.

(b) The board shall meet as often as necessary to perform its duties. Meetings may be held at any time at the request of either of the joint chairs of the board or on written petition of two [a majority] of the members of the board from each house.

(b-1) Beginning July 1, 2009, the board shall meet at least once each month in Austin to take testimony and receive evidence related to funds received by the state from the Federal government for economic stabilization, including funds received under the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5). This subsection expires January 1, 2011.

(c-1) Each member of the legislature is entitled to attend and present his views in any meeting of the board, except that a legislator who is not a member of the board may not vote.

SECTION 2.04. Chapter 322, Government Code, is amended by adding Sections 322.0141, 322.0142, 322.1043, and 322.0144 to read as follows:

Sec. 322.0141. RECOVERY ACT FUNDING. (a) The board shall report monthly on the receipt and use of Recovery Act funds as provided by this section.

(b) The board shall issue the report not later than the 15th day of each month following a reporting period. A reporting period consists of a calendar month.

(c) The report shall contain the following information:

(1) the amount of Recovery Act funding received by each state agency, political subdivision, and private entity under the Act;

(2) the title(s) and section(s) of the Recovery Act under which the funding is provided;

(3) any outstanding requirements or unmet deadlines for applying for Recovery Act funds;

(4) any changes in any requirements associated with Recovery Act funding, including but not limited to spending limitations, state match or cost share requirements, percentage limitations and timeframes;

(5) when Recovery Act funding is anticipated to end;

(6) whether any additional authority is necessary to spend the Recovery Act funds;

(7) the number of additional state employees actually employed or projected as needed to oversee or administer Recovery Act funds; and

(8) current plans for addressing how each agency will conduct its operations when Recovery Act funds ends.

(d) Each state agency, political subdivision, and private entity receiving Recovery Act funds shall provide the board any information requested by the board under this section necessary for the board to prepare a report required under this section and shall submit such reports as the board may require to administer this section.

Sec. 322.0142. INTERFERENCE WITH BOARD FUNCTIONS; CRIMINAL OFFENSE. (a) An officer or employee of this state or of an entity receiving Recovery Act funds commits an offense if the officer or employee:

(1) refuses to immediately permit the board to examine or have access to the books, accounts, reports, vouchers, papers, documents, or electronic data which the board designated as necessary to prepare the reports required under Section 322.0141;

(2) interferes with the Board's reporting duties; or

(3) refuses to make a report required by this chapter.

(b) An offense under this section is a felony of the third degree.

(c) An offense under this section may be prosecuted in the county in which an element of the offense occurs or in Travis County.

Sec. 322.0143. REQUEST FOR INFORMATION; CIVIL PENALTY. (a) The board may serve upon the officer or employee of an agency or entity written requests for information or inspection of property necessary to produce the reports under Section 322.0141. A request under this section shall identify with reasonable particularity the information, documents or material sought. A request seeking inspection of documents or property shall describe with reasonable particularity the documents to be produced or the property to which access is requested, and shall set forth the items to be inspected by individual item or by category.

(b) An officer or employee who does not produce the documents or grant access to the property not later than 24 hours after the request is served is personally liable to the state for a civil penalty of $5,000 for each day the conduct continues.

(c) The attorney general, the district attorney of Travis County, or the prosecuting attorney of the county in which an violation is alleged to have occurred may sue to collect the penalty.

Sec. 322.0144. SUPPLEMENTAL DEFINITION. As used in this chapter, "Recovery Act" means the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5).

ARTICLE 3. TEXAS LEGISLATIVE COUNCIL

SECTION 3.01. Section 323.001(b), Government Code, is amended to read as follows:

(b) The council consists of:

(1) the lieutenant governor;

(2) the speaker of the house of representatives;

(3) the chairman of the house administration committee;

(4) eight [six] senators from various areas of the state appointed by the president of the senate; and

(5) seven [five] other members of the house of representatives from various areas of the state appointed by the speaker.

SECTION 3.02. Chapter 323, Government Code, is amended by adding Section 323.002 to read as follows:

Sec. 323.002. SUNSET PROVISION. The council is subject to review under Chapter 325 (Texas Sunset Act), but is not abolished under that chapter. The council shall be reviewed during the periods in which state agencies abolished in 2013 and every 12th year after that year are reviewed.

SECTION 3.03. Section 323.003, Government Code, by amending Subsections (a) and (b) and adding Subsections (a-1), (b-1), (e), and (f) to read as follows:

Sec. 323.003. MEETINGS. (a) The council shall meet as often as necessary to perform its duties. Meetings may be held at any time at the request of either of the joint chairs of the council or on written petition of two of the members of the council from each house.

(a-1) Beginning July 1, 2009, the council shall meet at least once very two months in Austin to take testimony and receive evidence related to funds received by the state from the Federal government for economic stabilization, including funds received under the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5). This subsection expires January 1, 2011.

(b) Except as provided by Subsection (b-1), a [A] majority of the members of the council from each house of the legislature constitutes a quorum. If a quorum is present, the council may act on any matter that is within its jurisdiction by a majority vote.

(b-1) Two members of the council from each house constitutes a quorum for the taking of testimony and receiving evidence.

(e) As an exception to Chapter 551 and other law, if a meeting is located in Austin and the joint chairs of the council are physically present at the meeting, then any number of the other members of the council may attend the meeting by use of telephone conference call, video conference call, or other similar telecommunication device. This subsection applies for purposes of constituting a quorum, for purposes of voting, and for any other purpose allowing a member of the council to otherwise fully participate in any meeting of the council. This subsection applies without exception with regard to the subject of the meeting or topics considered by the members.

(f) A meeting held by use of telephone conference call, video conference call, or other similar telecommunication device:

(1) is subject to the notice requirements applicable to other meetings;

(2) must specify in the notice of the meeting the location in Austin of the meeting at which the joint chairs will be physically present;

(3) must be open to the public and shall be audible to the public at the location in Austin specified in the notice of the meeting as the location of the meeting at which the joint chairs will be physically present; and

(4) must provide two-way audio communication between all members of the council attending the meeting during the entire meeting, and if the two-way audio communication link with any member attending the meeting is disrupted at any time, the meeting may not continue until the two-way audio communication link is reestablished.

SECTION 3.04. Sections 323.0145(a)-(b), Government Code, are amended to read as follows:

Sec. 323.0145. ELECTRONIC AVAILABILITY OF LEGISLATIVE INFORMATION THROUGH THE INTERNET. (a) In this section:

(1) "Internet" means the largest nonproprietary nonprofit cooperative public computer network, popularly known as the Internet.

(2) "Legislative information" means:

(A) a list of all the members of each house of the legislature;

(B) a list of the committees of the legislature and their members;

(C) the full text of each bill as filed and as subsequently amended, substituted, engrossed, or enrolled in either house of the legislature;

(D) the full text of each amendment or substitute adopted by a legislative committee for each bill filed in either house of the legislature;

(E) the calendar of each house of the legislature, the schedule of legislative committee hearings, and a list of the matters pending on the floor of each house of the legislature;

(F) detailed procedural information about how a bill filed in either house of the legislature becomes law, including detailed timetable information concerning the times under the constitution or the rules of either house when the legislature may take certain actions on a bill;

(G) the district boundaries or other identifying information for the following districts in Texas:

(i) house of representatives;

(ii) senate;

(iii) State Board of Education; and

(iv) United States Congress; [and]

(H) information about legislative oversight of Recovery Act funds, including the committees of each house and each legislative agency responsible for providing oversight of or information about Recovery Act funds;

(I) other information related to the legislative process that in the council's opinion should be made available through the Internet.

(3) "Recovery Act" means the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5)

(b) The council, to the extent it considers it to be feasible and appropriate, may make legislative information available to the public through the Internet. The council shall make legislative information related to the Recovery Act available to the public through the Internet.

ARTICLE 4. LEGISLATIVE REFERENCE LIBRARY AND SUNSET ADVISORY

COMMISSION

SECTION 4.01. Chapter 324, Government Code, is amended by adding Section 324.003 to read as follows:

Sec. 324.003. SUNSET PROVISION. The board and the library are subject to review under Chapter 325 (Texas Sunset Act), but are not abolished under that chapter. The board and the library shall be reviewed during the periods in which state agencies abolished in 2013 and every 12th year after that year are reviewed.

SECTION 4.02. Chapter 324, Government Code, is amended by amending Section 324.004 and adding Section 324.0041 to read as follows:

Sec. 324.004. LEGISLATIVE LIBRARY BOARD. (a) The board controls and administers the library.

(b) The board consists of:

(1) the lieutenant governor;

(2) the speaker of the house of representatives;

(3) the chairman of the house appropriations committee;

(4) four [two] members of the senate appointed by the lieutenant governor; and

(5) three [one] other [member] of the house appointed by the speaker.

(b-1) The lieutenant governor and the speaker are joint chairs of the board.

(c) Members of the board serve without compensation but are entitled to reimbursement for actual and necessary expenses incurred in attending meetings and performing official functions.

(d) Actual and necessary expenses are paid from funds appropriated to the board.

Sec. 323.0041. MEETINGS. (a) The board shall meet as often as necessary to perform its duties. Meetings may be held at any time at the request of either of the joint chairs of the board or on written petition of two of the members of the board from each house.

(a-1) Beginning July 1, 2009, the board shall meet at least once every two months in Austin to take testimony and receive evidence related to funds received by the state from the Federal government for economic stabilization, including funds received under the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5). This subsection expires January 1, 2010.

(b) Except as provided by Subsection (c), a majority of the members of the board from each house of the legislature constitutes a quorum. If a quorum is present, the board may act on any matter that is within its jurisdiction by a majority vote.

(c) Two members of the board from each house constitutes a quorum for the taking of testimony and receiving evidence.

(d) As an exception to Chapter 551 and other law, if a meeting is located in Austin and the joint chairs of the board are physically present at the meeting, then any number of the other members of the board may attend the meeting by use of telephone conference call, video conference call, or other similar telecommunication device. This subsection applies for purposes of constituting a quorum, for purposes of voting, and for any other purpose allowing a member of the board to otherwise fully participate in any meeting of the board. This subsection applies without exception with regard to the subject of the meeting or topics considered by the members.

(e) A meeting held by use of telephone conference call, video conference call, or other similar telecommunication device:

(1) is subject to the notice requirements applicable to other meetings;

(2) must specify in the notice of the meeting the location in Austin of the meeting at which the joint chairs will be physically present;

(3) must be open to the public and shall be audible to the public at the location in Austin specified in the notice of the meeting as the location of the meeting at which the joint chairs will be physically present; and

(4) must provide two-way audio communication between all members of the board attending the meeting during the entire meeting, and if the two-way audio communication link with any member attending the meeting is disrupted at any time, the meeting may not continue until the two-way audio communication link is reestablished.

SECTION 4.03. Chapter 324, Government Code, is amended by amending by adding Section 324.0081 to read as follows:

Sec. 324.0081. RECOVERY ACT DEPOSITORY. (a) The library shall serve as the central depository for all Recovery Act publications.

(b) Each agency, political subdivision, or private entity receiving, disbursing, investigating, auditing, or reporting the use of Recovery Act funds shall provide the library with a copy of each Recovery Act publication.

(c) To the extent feasible, the library shall make Recovery Act publications available for public viewing on the Internet.

(d) As used in this section:

(1) "Recovery Act" means the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5)

(2) "Recovery Act publication":

(A) means information in any format, including materials in a physical format or in an electronic format, related in any way to Recovery Act funds that:

(i) is produced by the authority of or at the total or partial expense of a state agency or is required to be distributed under law by the agency; and

(ii) is publicly distributed outside the agency by or for the agency;

(iii) information the distribution of which is limited to contractors with or grantees of the agency;

(iv) information the distribution of which is limited to persons within the agency or within other government agencies; and

(B) does not include information the distribution of which is limited to members of the public under a request made under the open records law, Chapter 552.

SECTION 4.04. Section 325.011, Government Code, is amended to read as follows:

Sec. 325.011. CRITERIA FOR REVIEW. The commission and its staff shall consider the following criteria in determining whether a public need exists for the continuation of a state agency or its advisory committees or for the performance of the functions of the agency or its advisory committees:

(1) the efficiency and effectiveness with which the agency or the advisory committee operates;

(2)(A) an identification of the mission, goals, and objectives intended for the agency or advisory committee and of the problem or need that the agency or advisory committee was intended to address; and

(B) the extent to which the mission, goals, and objectives have been achieved and the problem or need has been addressed;

(3)(A) an identification of any activities of the agency in addition to those granted by statute and of the authority for those activities; and

(B) the extent to which those activities are needed;

(4) an assessment of authority of the agency relating to fees, inspections, enforcement, and penalties;

(5) whether less restrictive or alternative methods of performing any function that the agency performs could adequately protect or provide service to the public;

(6) the extent to which the jurisdiction of the agency and the programs administered by the agency overlap or duplicate those of other agencies, the extent to which the agency coordinates with those agencies, and the extent to which the programs administered by the agency can be consolidated with the programs of other state agencies;

(7) the promptness and effectiveness with which the agency addresses complaints concerning entities or other persons affected by the agency, including an assessment of the agency's administrative hearings process;

(8) an assessment of the agency's rulemaking process and the extent to which the agency has encouraged participation by the public in making its rules and decisions and the extent to which the public participation has resulted in rules that benefit the public;

(9) the extent to which the agency has complied with:

(A) federal and state laws and applicable rules regarding equality of employment opportunity and the rights and privacy of individuals; and

(B) state law and applicable rules of any state agency regarding purchasing guidelines and programs for historically underutilized businesses;

(10) the extent to which the agency issues and enforces rules relating to potential conflicts of interest of its employees;

(11) the extent to which the agency complies with Chapters 551 and 552 and follows records management practices that enable the agency to respond efficiently to requests for public information; [and]

(12) the effect of federal intervention or loss of federal funds if the agency is abolished;

(13) for a legislative agency, board, or council subject to review under this chapter, the extent to which the agency, board, or council discharged its responsibilities related to Recovery Act funds. As used in this subdivision, "Recovery Act" means the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5).

ARTICLE 5. RECOVERY ACT ACCOUNTABILITY BOARD

SECTION 5.01. Subtitle C, Title 3, Government Code, is amended by adding Chapter 331 to read as follows:

CHAPTER 331. RECOVERY ACT ACCOUNTABILITY BOARD.

Sec. 331.001. DEFINITIONS. In this chapter:

(1) "Recovery Act" means the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5).

(2) "Board" means the Recovery Act Accountability Board.

(3) "Legislative agency" means:

(A) the Texas Legislative Council;

(B) the Legislative Budget Board;

(C) the Legislative Reference Library;

(D) the Texas Fiscal Responsibility Office; or

(E) any other agency in the legislative branch of state government.

Sec. 331.002. RECOVERY ACT ACCOUNTABILITY BOARD. (a) The Recovery Act Accountability Board consists of:

(1) the following voting members:

(A) the lieutenant governor;

(B) the speaker of the house of representatives;

(C) one senate member and one house member of the Legislative Audit Board;

(D) one senate member and one house member of the Legislature Budget Board;

(E) one senate member and one house member of the Texas Legislative Council

(F) one senate member and one house member of the Sunset Advisory Commission;

(G) one senate member and one house member of the Legislative Library Board;

(H) the chairman and vice-chairman of the House Select Committee on Federal Economic Stabilization Funding;

(I) four other members of the senate;

(J) four other members of the house;

(K) two public members appointed by the lieutenant governor; and

(L) two public members appointed by the speaker of the house.

(2) the following non-voting members:

(A) four members of Congress from Texas, with two members selected by the members of each party required by law to hold a primary;

(B) the State Auditor;

(C) the director of the Legislative Budget Board;

(D) the executive director of the Texas Legislative Council;

(E) the executive director of the Sunset Advisory Commission; and

(F) the director of the Legislative Reference Library.

(b) One of the members appointed under Subsection (a)(1) must be the chairman of the senate finance committee. One other member appointed under Subsection (a)(1) must be the chairman of the house appropriations committee.

(c) The lieutenant governor and the speaker are joint chairs of the board.

(d) Legislative members serving on the board because of their service on another board or committee serve during their service on that board. Other legislative members and public members serve for the term of the board.

(e) If a vacancy occurs in the appointed membership, the appropriate appointing authority shall appoint a person to serve for the remainder of the unexpired term.

(f) Each member of the board is entitled to reimbursement for actual and necessary expenses incurred in performing commission duties. Each legislative member is entitled to reimbursement from the appropriate fund of the member's respective house. Each public member is entitled to reimbursement from the appropriate fund of the house of the appointing authority.

Sec. 331.003. TERM OF BOARD. The board is abolished and this chapter expires December 31, 2013.

Sec. 331.004. ADMINISTRATIVE OFFICER. The State Auditor serves as the chief administrative officer of the board.

Sec. 331.005. QUORUM; MEETINGS. (a) The board shall meet as often as necessary to perform its duties. Meetings may be held at any time at the request of either of the joint chairs of the board or on written petition of four of the members of the board from each house.

(b) Beginning July 1, 2009, the board shall meet at least once each month in Austin to take testimony and receive evidence related to funds received by the state from the Federal government for economic stabilization, including funds received under the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5).

(c) Except as provided by Subsection (b-1), a majority of the members of the board from each house of the legislature constitutes a quorum. If a quorum is present, the board may act on any matter that is within its jurisdiction by a majority vote.

(d) Two members of the board from each house constitutes a quorum for the taking of testimony and receiving evidence.

(e) Each member of the legislature is entitled to attend and present the legislator's views in any meeting of the board, except that a legislator who is not a member of the board may not vote.

(f) As an exception to Chapter 551 and other law, if a meeting is located in Austin and the joint chairs of the board are physically present at the meeting, then any number of the other members of the board may attend the meeting by use of telephone conference call, video conference call, or other similar telecommunication device. This subsection applies for purposes of constituting a quorum, for purposes of voting, and for any other purpose allowing a member of the board to otherwise fully participate in any meeting of the board. This subsection applies without exception with regard to the subject of the meeting or topics considered by the members.

(g) A meeting held by use of telephone conference call, video conference call, or other similar telecommunication device:

(1) is subject to the notice requirements applicable to other meetings;

(2) must specify in the notice of the meeting the location in Austin of the meeting at which the joint chairs will be physically present;

(3) must be open to the public and shall be audible to the public at the location in Austin specified in the notice of the meeting as the location of the meeting at which the joint chairs will be physically present; and

(4) must provide two-way audio communication between all members of the board attending the meeting during the entire meeting, and if the two-way audio communication link with any member attending the meeting is disrupted at any time, the meeting may not continue until the two-way audio communication link is reestablished.

Sec. 331.006. POWERS AND DUTIES. The board shall coordinate the auditing and reviews of spending of funds provided to the state through the Recovery Act that are conducted by a legislative agency to ensure that duplication and overlap of legislative agency work is avoided.

Sec. 331.007. HEARINGS; INVESTIGATIONS AND SURVEYS. (a) The board may hold public or executive hearings to make investigations and surveys.

(b) The hearing shall be held at a time and place in the state determined by the board.

(c) The board may:

(1) inspect and copy any book, record, file, or other instrument or document of a department, institution, county, or political subdivision of the state that is pertinent to a matter under investigation by the board; and

(2) examine and audit the books of a person, firm, or corporation having dealings with a department or institution under investigation by the board.

(d) Any member of the board may administer oaths to witnesses appearing at the hearing.

Sec. 331.008. SUBPOENAS. (a) The board may issue subpoenas to compel the attendance of witnesses and the production of books, records, or other documents in their custody.

(b) A subpoena must be signed by either of the joint chairs of the board.

(c) The sergeant at arms of either house of the legislature or any peace officer shall serve the subpoena in the manner prescribed for service of a district court subpoena.

(d) If a person to whom a subpoena is directed refuses to appear, refuses to answer inquiries, or fails or refuses to produce books, records, or other documents that were under the person's control when the demand was made, the board shall report the fact to a Travis County district court.

(e) The district court shall enforce a board subpoena by attachment proceedings for contempt in the same manner the court enforces a subpoena issued by that court.

(f) A subpoenaed witness who attends a board hearing or meeting is entitled to the same mileage and per diem as a witness who appears before a grand jury of this state.

Sec. 331.009. ASSISTANCE FROM OTHER AGENCIES; CONTRACTS. (a) The board may request assistance and advice from a legislative agency or any other state officer, department, board, commission, or agency, including the governor and the attorney general.

(b) Either of the joint chairs may request legal opinions or other advice or assistance from:

(1) the counsellor of the Texas Fiscal Responsibility Office; or

(2) the director of the legal division of the Texas Legislative Council.

ARTICLE 6. CONFORMING CHANGES

SECTION 6.01. Sections 326.001 and 326.003, Government Code, are amended to read as follows:

Sec. 326.001. DEFINITION. In this chapter, "legislative agency" means:

(1) the senate;

(2) the house of representatives;

(3) a committee, division, department, or office of the senate or house;

(4) the Texas Legislative Council;

(5) the Legislative Budget Board;

(6) the Legislative Reference Library;

(7) the Texas Fiscal Responsibility Office [office of the State Auditor];

(7-a) the Recovery Act Accountability Board; or

(8) any other agency in the legislative branch of state government.

Sec. 326.003. COMMITTEE OF TEXAS FISCAL RESPONSIBILITY OFFICE [STATE AUDITOR'S] OFFICE, LEGISLATIVE BUDGET BOARD, AND SUNSET ADVISORY COMMISSION. (a) The Texas Fiscal Responsibility [State Auditor's] Office, Legislative Budget Board, and Sunset Advisory Commission shall form a committee to make recommendations relating to the coordination of the agencies' functions.

(b) The committee shall meet on a regular basis at least quarterly. The State Auditor shall call each meeting.

(c) Each agency shall designate a supervisory level staff member as its representative on the committee.

(d) Not later than one month after the date of a meeting, the committee shall submit its recommendations in writing to the head of each agency and the members of the Legislative Audit Board [legislative audit committee].

SECTION 6.02. Section 783.003(4), Government Code, is amended to read as follows:

Sec. 783.003. DEFINITIONS. In this chapter:

(4) "State agency" means a state board, commission, or department, or office having statewide jurisdiction, but does not include a state college or university or an agency of the legislative branch.

ARTICLE 7. TRANSITION PROVISIONS AND EFFECTIVE DATES

SECTION 7.01. (a) On the effective date of this Act the state auditor's office is renamed the Texas Fiscal Responsibility Office.

(b) The validity of an action taken by the state auditor, the state auditor's office, or the legislative audit committee is not affected by the change in names of the state auditor's office and the legislative audit committee.

(c) On the effective date of this Act:

(1) all functions, activities, employees, rules, forms, money, property, contracts, records, and obligations of the state auditor's office become functions, activities, employees, rules, forms, money, property, contracts, records, and obligations of the Texas Fiscal Responsibility Office without a change in status;

(2) a reference in law to the state auditor's office means the Texas Fiscal Responsibility Office; and

(3) all funds appropriated by the state auditor's office, including funds for providing administrative support for the state auditor's office, such as funds to pay the salary and benefits of employees who provide administrative support, are transferred to the Texas Fiscal Responsibility Office.

SECTION 7.02. (a) In this section, "board," "department," and "office" have the meanings assigned by Section 321.001, Government Code, as amended by this Act.

(c) During the time before the effective date of this Act, any person who performs a function related to the investigation of fraud or abuse immediately before the effective date of this Act continues to keep the same functions that the person had under the law as it existed immediately before the effective date of this Act, and the former law is continued in effect for that purpose.

(d) Except as provided by Subsection (c) of this section, the powers, duties, and functions of an inspector general or other officer or employee of a department that relate to the investigation of fraud or abuse are transferred to the State Auditor under Subchapter B, Chapter 321, Government Code, as added by this Act.

(e) Except as provided by Subsection (c) of this section, the personnel, property, and obligations of an inspector general or other officer or employee of the department that relate to the investigation of fraud or abuse are transferred to the inspector general.

(f) A department procedure that relates to the investigation of fraud or abuse remains in effect as a department procedure until procedures are developed by the State Auditor under Subchapter B.

(g) Except as provided by Subsection (c) of this section, a reference in law to an inspector general or other officer or employee of a department that relates to the investigation of fraud or abuse means the State Auditor.

(h) The validity of a prior action that relates to the investigation of fraud or abuse is not affected by the transfer.

SECTION 7.03. (a) Not later than March 1, 2010, the Texas Fiscal Responsibility Office shall develop the standard contract provision required by Section 321.026, Government Code, as added by this Act.

(b) A department is not required to comply with Section 321.026, Government Code, as added by this Act, until September 1, 2010.

SECTION 7.04. (a) In this section, "performance review" means a function performed by the Legislative Budget Board before the effective date of this Act under Section 322.015, 322.016, 322.0165, 322.017, or 322.018, Government Code.

(b) On the effective date of this Act, the following are transferred from the Legislative Budget Board to the Texas Fiscal Responsibility Office:

(1) all employees whose primary duties involved performing or supporting the performance of performance reviews;

(2) all records and equipment primarily used by the board in connection with performance reviews; and

(3) all appropriations for the state fiscal biennium beginning September 1, 2009, made to or budgeted by the board specifically for performance reviews.

(c) If the Legislative Budget Board does not receive appropriations specifically designated for performance review purposes for the state fiscal biennium beginning September 1, 2009, and has not specifically budgeted amounts for performance review purposes for that biennium, an amount equal to the amount of appropriations specifically designated for or budgeted by the Legislative Budget Board for performance review purposes for the state fiscal biennium beginning September 1, 2007, is transferred from appropriations made to the Legislative Budget Board for the state fiscal biennium beginning September 1, 2009, to the Texas Fiscal Responsibility Office for that biennium.

SECTION 7.05. In the event of a conflict between a provision of this Act and another Act passed by the 81st Legislature, Regular Session, 2009, that becomes law, this Act prevails and controls regardless of the relative dates of enactment.

SECTION 7.06. A person holding an office for which this Act alters the duties of that office or serving as a member of a board, committee, or council for which this Act alters the composition of the board, committee, or council does not vacate the office or the board, committee, or council because of the changes made by this Act and those persons continue in office or as members of the board, committee, or council.

SECTION 7.07. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each House, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.