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|
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A BILL TO BE ENTITLED
|
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AN ACT
|
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relating to the powers and duties of the state auditor's office. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 321.001, Government Code, is amended by |
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amending Subdivisions (1) and (2) and adding Subdivision (3-a) to |
|
read as follows: |
|
(1) "Audit plan" means the outline of work [approved
|
|
by the committee] for the 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. |
|
(2) "Audit working paper" means all documentation |
|
[documentary] and other information prepared or maintained in |
|
conducting an audit, review, or investigation, including all |
|
intra-agency and interagency communications and risk assessment |
|
information relating to an audit, review, or investigation and all |
|
draft reports or portions thereof. |
|
(3-a) "Coordinating council" means the Audit and |
|
Investigative Coordinating Council established under Section |
|
321.0221. |
|
SECTION 2. Chapter 321, Government Code, is amended by |
|
adding Section 321.0014 to read as follows: |
|
Sec. 321.0014. APPLICABILITY TO CERTAIN ENTITIES. This |
|
chapter applies to the following entities in the same manner as if |
|
each entity were 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 or |
|
for a state officer or department and that solicits gifts, grants, |
|
and other donations for the Texas Enterprise Fund under Section |
|
481.078 or any other purpose; and |
|
(5) any public or private person or entity, including |
|
a local governmental entity or political subdivision of this state, |
|
receiving funds that were made available by or provided under the |
|
American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5). |
|
SECTION 3. Sections 321.011(a), (c), and (d), Government |
|
Code, are amended to read as follows: |
|
(a) The State Auditor may employ a professional staff, |
|
including assistant auditors and other [stenographic and clerical] |
|
personnel. |
|
(c) The State Auditor may discharge any [assistant auditors
|
|
or stenographic or clerical] personnel at any time for any reason |
|
satisfactory to the State Auditor and without a hearing. |
|
(d) The State Auditor and 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 State Auditor's [his] |
|
office so that the State Auditor may render to the legislature the |
|
service the legislature has a right to expect. 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 on the state auditor's staff. |
|
SECTION 4. Section 321.012, Government Code, is amended to |
|
read as follows: |
|
Sec. 321.012. BUDGET [EXPENDITURES] AND SALARIES. (a) The |
|
State Auditor shall submit an operating budget to the committee not |
|
later than September 1 of each year [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 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
|
|
stenographic and clerical personnel may not exceed the amounts paid
|
|
by other departments for similar services.
|
|
[(d)] Salaries shall be paid monthly. |
|
SECTION 5. Sections 321.013(b), (c), (d), (e), (f), and |
|
(j), Government Code, are amended to read as follows: |
|
(b) The State Auditor shall conduct the audits in accordance |
|
with generally accepted government auditing standards as |
|
prescribed by one of the following: |
|
(1) the United States Government Accountability |
|
Office; |
|
(2) the American Institute of Certified Public |
|
Accountants; [, the Governmental Accounting Standards Board, the
|
|
United States General Accounting Office,] or |
|
(3) other professionally recognized entities that |
|
prescribe auditing standards. |
|
(c) The State Auditor shall submit an annual [recommend the] |
|
audit plan for the state [for each year] to the committee not later |
|
than September 1 of each year. The annual audit plan is considered |
|
approved if the committee does not take action on the plan before |
|
November 1 of the year the plan is submitted. The State Auditor |
|
shall notify the committee of any changes to the plan. 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 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. An audit plan |
|
created under this subsection is considered an audit working paper |
|
and is exempt from disclosure under Section 552.116. [The committee
|
|
shall review and approve the plan.] |
|
(d) At any time during an audit or investigation, the State |
|
Auditor may require the assistance of the chief executive officer, |
|
the administrative head, an official, a board or commission member, |
|
an auditor, an accountant, or other officers or employees of the |
|
entity being audited or investigated. During an investigation, the |
|
State Auditor, or the State Auditor's designated representative, |
|
may take possession of any property the State Auditor has |
|
reasonable cause to believe was purchased with public funds after |
|
making a determination that the property is necessary for the |
|
purposes of the investigation. |
|
(e) The State Auditor is entitled to access and make copies |
|
of [to] all of the books, accounts, confidential or nonconfidential |
|
[unconfidential] reports, vouchers, or other records of |
|
information in any department or entity subject to audit, including |
|
[access to] all electronic data. However, the State Auditor is |
|
entitled to [has] access and make copies of [to] information and |
|
data the release of which is restricted under federal law only with |
|
the approval of the appropriate federal administrative agency, and |
|
the State Auditor is entitled to [shall have] access and make copies |
|
of [to] copyrighted or restricted information obtained by the |
|
Office of the Comptroller of Public Accounts under subscription |
|
agreements and utilized in the preparation of economic estimates |
|
only for audit purposes. |
|
(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. |
|
(j) In devising the audit plan under Subsection (c), the |
|
State Auditor shall perform risk assessments as required by law. |
|
The process of assessing risks to the state is the first stage of |
|
auditing, and all records of risk assessment are part of the audit |
|
working papers of the State Auditor. Accordingly, all documentation |
|
of risk assessments by the State Auditor is exempt from disclosure |
|
under Section 552.116 and may be withheld or redacted in response to |
|
a request under Chapter 552 without the necessity of requesting a |
|
decision from the attorney general under Subchapter G, Chapter 552. |
|
SECTION 6. Section 321.0131, Government Code, is amended to |
|
read as follows: |
|
Sec. 321.0131. FINANCIAL AUDIT. A financial audit is an |
|
audit to determine: |
|
(1) in the case of the state or a department, whether |
|
the records, books, and accounts of the audited entity accurately |
|
reflect its financial and fiscal operations and condition; |
|
(2) whether the audited entity is maintaining |
|
effective accounting control over revenues, encumbrances, |
|
obligations, expenditures, assets, [and] liabilities, and other |
|
resources; |
|
(2-a) whether the audited entity is complying with |
|
laws, rules, regulations, and contract and grant provisions as the |
|
laws, rules, regulations, and provisions relate to financial |
|
transactions, systems, and processes; |
|
(3) whether the accounting and record-keeping of |
|
collections of state revenues and receipts by the audited entity |
|
are fair, accurate, and in accordance with law; |
|
(4) whether the accounting and record-keeping of money |
|
or negotiable securities or similar assets handled by the audited |
|
entity on behalf of the state or received from the state and held in |
|
trust by the audited entity are proper, accurate, and in accordance |
|
with law; or [and] |
|
(5) whether financial statements and other financial, |
|
program, and statistical reports of the audited entity are fairly |
|
presented. |
|
SECTION 7. Section 321.0132, Government Code, is amended to |
|
read as follows: |
|
Sec. 321.0132. COMPLIANCE AUDIT. A compliance audit is an |
|
audit to determine: |
|
(1) whether the audited entity has obligated, |
|
expended, received, and used state funds in accordance with the |
|
purpose for which those funds have been appropriated or otherwise |
|
authorized by law; |
|
(2) whether the audited entity has obligated, |
|
expended, received, and used state funds in accordance with any |
|
limitations, restrictions, conditions, or mandatory directions |
|
imposed by law on those obligations, expenditures, receipts, or |
|
uses; |
|
(3) in the case of a local or private entity or agency, |
|
whether the records, books, and accounts of the audited entity |
|
fairly and accurately reflect its financial and fiscal operations |
|
relating to the obligation, receipt, expenditure, and use of state |
|
funds or funds represented as being collected for a state purpose; |
|
(4) whether the collections of state revenues and |
|
receipts by the audited entity are in accordance with applicable |
|
laws, rules, and regulations; [and] |
|
(5) whether money or negotiable securities or similar |
|
assets handled by the audited entity on behalf of the state or |
|
received from the state and held in trust by the audited entity have |
|
been properly and legally administered; and |
|
(6) whether an entity that has contracted with a |
|
department or received funds through a grant with a department is |
|
complying with the provisions of the contract or grant, as |
|
applicable. |
|
SECTION 8. Chapter 321, Government Code, is amended by |
|
adding Section 321.01365 to read as follows: |
|
Sec. 321.01365. AUDIT WORKING PAPERS RELATED TO AN |
|
INVESTIGATION. All audit working papers of the State Auditor |
|
related to an investigation or complaint, including all records of |
|
communications related to the investigation or complaint, are |
|
confidential and are not subject to disclosure under Chapter 552. |
|
SECTION 9. Section 321.014, Government Code, is amended by |
|
adding Subsections (b-1) and (e-1) and amending Subsections (c), |
|
(d), (e), and (f) to read as follows: |
|
(b-1) If the State Auditor determines that any information |
|
to be included in a report would affect the security of a computer |
|
network of a department, the State Auditor may report that |
|
information to the chief executive officer of the affected |
|
department in a separate report. The separate report is an audit |
|
working paper of the State Auditor. |
|
(c) The State Auditor shall submit each report to the |
|
committee prior to publication. After a report is published, the |
|
[The] State Auditor shall file a copy of each report prepared under |
|
this section with: |
|
(1) the governor; |
|
(2) the lieutenant governor; |
|
(3) the speaker of the house of representatives; |
|
(4) the secretary of state; |
|
(5) the Legislative Reference Library; |
|
(6) each member of the governing body and the |
|
administrative head of each entity that is the subject of the |
|
report; and |
|
(7) members of the legislature on a committee with |
|
oversight responsibility for the entity or program that is the |
|
subject of the report. |
|
(d) The State Auditor shall maintain a complete file |
|
containing: |
|
(1) copies of each audit report; and |
|
(2) audit working [work] papers and other evidence |
|
relating to the work of the State Auditor. |
|
(e) The State Auditor shall maintain the audit working |
|
papers [files] required by Subsection (d) for at least seven |
|
[eight] years after the date [on which] the report is published |
|
[information is filed]. |
|
(e-1) Each department or entity shall file a written |
|
response with the State Auditor within the period established by |
|
the State Auditor. The written response must: |
|
(1) identify whether the department or entity agrees |
|
or disagrees with each recommendation; |
|
(2) if the department or entity disagrees with the |
|
recommendation, state the reason why the department or entity |
|
disagrees with the recommendation; and |
|
(3) state whether the department or entity intends to |
|
implement the recommendation. |
|
(f) Each audited department or entity shall report on the |
|
manner in which the department or entity has addressed the findings |
|
and recommendations that are included in a report prepared by the |
|
state auditor under this section and on the status of the |
|
department's or entity's responsive efforts. The state auditor |
|
shall prescribe the form and schedule for a report by the department |
|
or entity under this subsection. |
|
SECTION 10. Section 321.017, Government Code, is amended to |
|
read as follows: |
|
Sec. 321.017. AUDIT [REVIEW] AND OVERSIGHT OF FUNDS AND |
|
ACCOUNTS RECEIVING COURT COSTS. (a) The state auditor may audit |
|
[review] each fund and account into which money collected as a court |
|
cost is directed by law to be deposited to determine whether: |
|
(1) the money is being used for the purpose or purposes |
|
for which the money is collected; and |
|
(2) the amount of the court cost is appropriate, |
|
considering the purpose or purposes for which the cost is |
|
collected. |
|
(b) The state auditor may perform audits [reviews] under |
|
this section as specified in the audit plan developed under Section |
|
321.013. |
|
(c) The state auditor shall make the findings of an audit [a
|
|
review] performed under this section available to the public and |
|
shall report the findings to the governor, the chief justice of the |
|
supreme court, the presiding judge of the court of criminal |
|
appeals, and the committee. The report may include the state |
|
auditor's recommendations for legislation or policy changes. |
|
SECTION 11. Section 321.018, Government Code, is amended by |
|
amending Subsection (b) and adding Subsection (f) to read as |
|
follows: |
|
(b) Each subpoena issued under Subsection (a) must be signed |
|
by either of the joint chairs of the committee or the secretary of |
|
the committee. |
|
(f) The State Auditor may subpoena witnesses, computers, |
|
equipment, books, records, or other documents in order to perform |
|
the State Auditor's duties under this chapter. A subpoena issued |
|
under this subsection may be served and enforced in the manner |
|
provided for a subpoena issued under Subsection (a). |
|
SECTION 12. Section 321.022, Government Code, is amended by |
|
adding Subsection (d) to read as follows: |
|
(d) The State Auditor may produce a public report for any |
|
investigation or complaint. The report shall be marked as a public |
|
report. |
|
SECTION 13. Chapter 321, Government Code, is amended by |
|
adding Sections 321.0221 through 321.0226 to read as follows: |
|
Sec. 321.0221. AUDIT AND INVESTIGATIVE COORDINATING |
|
COUNCIL. (a) The Audit and Investigative Coordinating Council is |
|
composed of: |
|
(1) the State Auditor; and |
|
(2) individuals appointed by the State Auditor from |
|
any of the following: |
|
(A) internal auditors; |
|
(B) inspectors general appointed or employed at |
|
any department; |
|
(C) chief fiscal officers; |
|
(D) information technology specialists; or |
|
(E) any other employee of a department. |
|
(b) The State Auditor shall serve as the chair of the |
|
coordinating council. A member serves at the will of the State |
|
Auditor and as an additional duty of the member's office or |
|
employment. |
|
(c) The coordinating council shall meet at least quarterly |
|
and at other times at the call of the chair. |
|
(d) The coordinating council may: |
|
(1) cooperate on and coordinate the planning and |
|
performance of audits, reviews, and investigations, as necessary; |
|
and |
|
(2) cooperate on and coordinate fraud prevention |
|
activities. |
|
(e) The coordinating council shall submit a report of the |
|
coordinating council's activities at least once each year to: |
|
(1) the governor; |
|
(2) the lieutenant governor; |
|
(3) the speaker of the house of representatives; |
|
(4) the State Auditor; and |
|
(5) the appropriate legislative oversight committees. |
|
(f) Chapters 551 and 2110 do not apply to the coordinating |
|
council. |
|
(g) The coordinating council's activities under this |
|
section do not include making management decisions or directing the |
|
operations of a department. |
|
Sec. 321.0222. INSPECTORS GENERAL: COOPERATION AND |
|
COORDINATION WITH STATE AUDITOR. (a) The State Auditor may, on |
|
request of a department's inspector general, provide appropriate |
|
information or other assistance to the inspector general. |
|
(b) An inspector general and the State Auditor may meet to |
|
share information, coordinate audits, investigations, or reviews, |
|
or schedule work plans. |
|
(c) The State Auditor is entitled to access all information |
|
maintained by an inspector general, including: |
|
(1) information made confidential by state or federal |
|
law; |
|
(2) vouchers; |
|
(3) electronic data; |
|
(4) internal records; and |
|
(5) other information. |
|
(d) Any documentation or other information prepared or |
|
maintained by or for the State Auditor in connection with the State |
|
Auditor's work with an inspector general to conduct an audit, |
|
investigation, or review is confidential and not subject to |
|
disclosure under Chapter 552. |
|
Sec. 321.0223. INSPECTORS GENERAL: STATE AUDITOR AUDITS, |
|
INVESTIGATIONS, AND ACCESS TO INFORMATION NOT IMPAIRED. Provisions |
|
in this chapter or other law related to the operation of an |
|
inspector general do not: |
|
(1) take precedence over the authority of the State |
|
Auditor to conduct an audit, review, or investigation under this |
|
chapter or other law; |
|
(2) prohibit the State Auditor from conducting an |
|
audit, investigation, or review; or |
|
(3) prohibit the State Auditor from having full and |
|
complete access to all records and other information, including |
|
witnesses and electronic data, that the State Auditor considers |
|
necessary for the audit, investigation, or review. |
|
Sec. 321.0224. INSPECTORS GENERAL: ACCESS TO STATE AUDITOR |
|
INFORMATION. Except as authorized by the State Auditor, this |
|
chapter or other law related to the operation of an inspector |
|
general does not permit an inspector general or any other person to |
|
access any working papers, including any documents, notes, and |
|
other information, collected or maintained by the State Auditor's |
|
Office. |
|
Sec. 321.0225. REPORTING BY INSPECTORS GENERAL. (a) On the |
|
request of the State Auditor, an inspector general shall in a timely |
|
manner provide the State Auditor with the status of an ongoing |
|
audit, investigation, or review. |
|
(b) An inspector general shall provide a final report to the |
|
State Auditor for each audit, investigation, or review conducted by |
|
the inspector general. The final report must include: |
|
(1) a summary of the activities performed by the |
|
inspector general in conducting the audit, investigation, or |
|
review; |
|
(2) a determination of whether wrongdoing was found; |
|
and |
|
(3) a description of any findings of wrongdoing. |
|
(c) An inspector general's final reports are subject to |
|
disclosure under Chapter 552. |
|
(d) The State Auditor shall prescribe the form and content |
|
of a report submitted under this section. |
|
Sec. 321.0226. INFORMATION SHARING. The State Auditor, by |
|
providing the coordinating council or an inspector general with |
|
information that is confidential or otherwise excepted from |
|
required disclosure under law, does not waive or affect the |
|
confidentiality of the information for purposes of state or federal |
|
law or waive the right to assert exceptions to required disclosure |
|
of the information in the future. |
|
SECTION 14. Chapter 321, Government Code, is amended by |
|
adding Sections 321.024 through 321.027 to read as follows: |
|
Sec. 321.024. USE OF STATE RESOURCES. The State Auditor may |
|
enter into an agreement with a department under which the State |
|
Auditor is permitted to use resources of the department, including |
|
the services of law enforcement officers commissioned or employed |
|
by the department. |
|
Sec. 321.025. ASSISTANCE BY DEPARTMENT EMPLOYEES. The |
|
State Auditor may require employees of a department to provide |
|
assistance in connection with the State Auditor's duties relating |
|
to the investigation of fraud, waste, and abuse in the provision of |
|
services for programs at a department or in state or federally |
|
funded programs implemented, administered, or overseen by or for |
|
the department. |
|
Sec. 321.026. ASSISTANCE OF LOCAL GOVERNMENTAL ENTITIES. |
|
The State Auditor may enter into an agreement with a municipality or |
|
county in this state that permits the State Auditor to use the |
|
resources of the municipality or county, including the services of |
|
law enforcement officers. |
|
Sec. 321.027. ASSISTANCE OF INSPECTORS GENERAL. The State |
|
Auditor may enter into an agreement with a department's inspector |
|
general under which the State Auditor is permitted to use resources |
|
of the inspector general, including the services of law enforcement |
|
officers commissioned or employed by the department or the |
|
inspector general. |
|
SECTION 15. Sections 441.185(c) and (d), Government Code, |
|
are amended to read as follows: |
|
(c) The state records administrator and the state archivist |
|
shall review the schedule and recommend the schedule's approval or |
|
disapproval to the director and librarian [and the state auditor.
|
|
The state auditor, based on a risk assessment and subject to the
|
|
legislative audit committee's approval of including the review in
|
|
the audit plan under Section 321.013, may review the schedule]. |
|
(d) If the director and librarian[, and the state auditor,
|
|
if the state auditor reviewed the schedule under Subsection (c),] |
|
approve the schedule, the schedule may be used as the basis for the |
|
lawful disposition of state records under Section 441.187 for a |
|
period to be determined by the commission. |
|
SECTION 16. Section 481.123, Government Code, is amended to |
|
read as follows: |
|
Sec. 481.123. DUTIES. The permit office shall: |
|
(1) provide comprehensive information on permits |
|
required for business enterprises in the state and make that |
|
information available to applicants and other persons; |
|
(2) assist applicants in obtaining timely and |
|
efficient permit review and in resolving issues arising from the |
|
review; |
|
(3) facilitate contacts between applicants and state |
|
agencies responsible for processing and reviewing permit |
|
applications; |
|
(4) assist applicants in the resolution of outstanding |
|
issues identified by state agencies, including delays experienced |
|
in permit review; |
|
(5) develop comprehensive application procedures to |
|
expedite the permit process; |
|
(6) compile a comprehensive list of all permits |
|
required of a person desiring to establish, operate, or expand a |
|
business enterprise in the state; |
|
(7) encourage and facilitate the participation of |
|
federal and local government agencies in permit coordination; |
|
(8) make recommendations for eliminating, |
|
consolidating, simplifying, expediting, or otherwise improving |
|
permit procedures affecting business enterprises by initiating |
|
[requesting that the state auditor, with the advice and support of
|
|
the permit office, initiate] a business permit reengineering review |
|
process involving all state agencies; |
|
(9) develop and implement an outreach program to |
|
publicize and make small business entrepreneurs and others aware of |
|
services provided by the permit office; |
|
(10) adopt rules, procedures, instructions, and forms |
|
required to carry out the functions, powers, and duties of the |
|
permit office under this subchapter; and |
|
(11) except as provided in Section 481.129, complete |
|
the implementation of the business permit review process on or |
|
before September 1, 1994, and provide all recommended statutory |
|
changes as needed to the legislature on or before January 1, 1995. |
|
SECTION 17. Section 531.454, Government Code, is amended to |
|
read as follows: |
|
Sec. 531.454. ELIGIBILITY SYSTEM REVIEW [DURING TRANSITION
|
|
PERIOD]. [(a)] The eligibility system, including all records, |
|
contracts, and other related information, is subject to audit by |
|
the state auditor in accordance with Chapter 321 [auditor's office
|
|
shall establish, in consultation with the Department of Information
|
|
Resources, an independent validation and verification program for
|
|
the eligibility system during the period of the transition plan
|
|
developed under Section 531.453.
The state auditor's office shall
|
|
also coordinate and consult with the commission, including the
|
|
commission's office of inspector general, in establishing the
|
|
program]. |
|
[(b)
The independent validation and verification program
|
|
must allow for a determination of:
|
|
[(1)
whether the goals set by the commission in the
|
|
transition plan are being met in accordance with the timetable
|
|
required by Section 531.453(a);
|
|
[(2)
whether the eligibility system is progressing
|
|
toward becoming fully functional relative to the needs of eligible
|
|
Texas residents;
|
|
[(3)
what actions are necessary to achieve full
|
|
functionality of the eligibility system;
|
|
[(4)
whether the commission is making progress toward
|
|
meeting the goals of the enhanced eligibility system described in
|
|
Section 531.452; and
|
|
[(5)
what additional actions are necessary to achieve
|
|
the goals of the enhanced eligibility system.
|
|
[(c)
The state auditor's office shall present the proposed
|
|
independent validation and verification program to the committee
|
|
and seek the committee's recommendations for modifications to the
|
|
proposed program.
The state auditor's office shall consider the
|
|
committee's recommendations and modify the proposed program as
|
|
necessary.
|
|
[(d) The state auditor's office may:
|
|
[(1)
enter into a contract with a person to perform the
|
|
duties required of the office under Subsection (a), subject to the
|
|
requirements of Subsection (c); and
|
|
[(2)
enter into a contract with a person to implement
|
|
the independent validation and verification program, or may
|
|
implement the program using a contractor with which the commission
|
|
contracts as provided by Subsection (e).
|
|
[(e)
The commission may enter into a contract with a person
|
|
before September 1, 2007, to operate an independent validation and
|
|
verification program for the eligibility system.
|
|
[(f)
The quality assurance team shall establish a schedule
|
|
for periodic monitoring of the eligibility system during the period
|
|
of the transition plan developed under Section 531.453.
|
|
[(g)
The state auditor's office and the quality assurance
|
|
team shall share information as necessary to fulfill their
|
|
respective duties under this section.] |
|
SECTION 18. Section 654.016(d), Government Code, is |
|
amended to read as follows: |
|
(d) An action of the classification officer under this |
|
section is subject to: |
|
(1) any limitation established for the agency in the |
|
General Appropriations Act, including limitations on the number of |
|
positions and amount of appropriations; and |
|
(2) the approval of the state auditor [with advice
|
|
from the Legislative Audit Committee]. |
|
SECTION 19. Sections 654.032 through 654.036, Government |
|
Code, are amended to read as follows: |
|
Sec. 654.032. EMPLOYMENT [APPOINTMENT] OF CLASSIFICATION |
|
OFFICER. The state auditor may employ a [shall appoint the] |
|
classification officer[, subject to the advice and approval of the
|
|
Legislative Audit Committee]. |
|
Sec. 654.033. QUALIFICATIONS OF CLASSIFICATION OFFICER. To |
|
be eligible to be employed [for appointment] as classification |
|
officer, an individual must have: |
|
(1) at least six years' experience in position |
|
classification or human resource management; or |
|
(2) a period of experience equivalent to that |
|
described in Subdivision (1) in related work in state employment |
|
that specially qualifies the person for the position. |
|
Sec. 654.034. SALARY OF CLASSIFICATION OFFICER. The state |
|
auditor shall set the salary of the classification officer [is
|
|
entitled to the salary set by the General Appropriations Act]. |
|
Sec. 654.035. FIRST ASSISTANT CLASSIFICATION OFFICER. The |
|
[classification officer, subject to the approval of the] state |
|
auditor [and the Legislative Audit Committee,] may employ [appoint] |
|
a first assistant classification officer [to whom the
|
|
classification officer may delegate the statutory powers and duties
|
|
of the classification officer when the classification officer is
|
|
absent]. |
|
Sec. 654.036. GENERAL DUTIES OF CLASSIFICATION OFFICER. |
|
Subject to approval by the state auditor, the [The] classification |
|
officer shall: |
|
(1) maintain and keep current the position |
|
classification plan; |
|
(2) advise and assist state agencies in equitably and |
|
uniformly applying the plan; |
|
(3) conduct classification compliance reviews |
|
[audits] to ensure conformity with the plan; [and] |
|
(4) make recommendations [that the classification
|
|
officer finds necessary and desirable about the operation and] for |
|
improvement of the plan to the governor and the legislature; and |
|
(5) study the compensation of positions that are |
|
exempt from the plan. |
|
SECTION 20. Section 654.037, Government Code, is amended by |
|
amending Subsection (a) and adding Subsection (a-1) to read as |
|
follows: |
|
(a) The classification officer shall: |
|
(1) make periodic studies of salary rates in other |
|
governmental units and in industry for similar work performed in |
|
state government; |
|
(1-a) conduct a periodic study of compensation of |
|
positions that are exempt from the position classification plan; |
|
and |
|
(2) subject to approval by the state auditor, report |
|
the [classification officer's] findings from the studies made under |
|
Subdivisions [Subdivision] (1) and (1-a) to the governor's budget |
|
office and the Legislative Budget Board not later than October 1 |
|
preceding each regular session of the legislature. |
|
(a-1) A study of the compensation of exempt positions |
|
conducted under Subsection (a) must compare exempt positions from |
|
different agencies and take into account the following: |
|
(1) the size of an agency's annual appropriations; |
|
(2) the number of full-time equivalent positions at |
|
the agency; |
|
(3) the market average compensation for a similar |
|
executive position; |
|
(4) the exempt position salary as compared to a |
|
similar classified position within the agency; and |
|
(5) other objective criteria as determined by the |
|
study team. |
|
SECTION 21. Section 654.038, Government Code, is amended to |
|
read as follows: |
|
Sec. 654.038. CLASSIFICATION COMPLIANCE REVIEWS [AUDITS]; |
|
NOTIFICATION AND VOLUNTARY CORRECTION OF NONCONFORMITY. (a) After |
|
approval by the state auditor, the [The] classification officer |
|
shall notify the governor, the comptroller, the Legislative Audit |
|
Committee, and the chief executive of the agency in writing when a |
|
classification compliance review [audit] reveals nonconformity |
|
with the position classification plan or with prescribed salary |
|
ranges. The notification shall specify the points of |
|
nonconformity. |
|
(b) The chief executive is entitled to a reasonable |
|
opportunity to resolve the nonconformity by: |
|
(1) reclassifying the employee to a position title or |
|
classification [class] consistent with the work performed; |
|
(2) changing the employee's duties to conform to the |
|
assigned classification [class]; or |
|
(3) recommending to the state auditor's office |
|
[obtaining] a new [class] description of work and salary range for |
|
the classification, subject to legislative approval. |
|
SECTION 22. Section 654.039, Government Code, is amended to |
|
read as follows: |
|
Sec. 654.039. REPORT OF INACTION. Subject to approval by |
|
the state auditor, the [The] classification officer shall make a |
|
written report of the facts to the governor and the Legislative |
|
Budget Board if the chief executive of an agency does not comply |
|
with Section 654.038(b) before the 21st day after the date of the |
|
classification officer's written notification. |
|
SECTION 23. Section 654.041, Government Code, is amended to |
|
read as follows: |
|
Sec. 654.041. EXAMINATION FOR COMPLIANCE BY STATE AUDITOR; |
|
REPORTS. The state auditor, in accordance with Chapter 321 |
|
[subject to a risk assessment and to the Legislative Audit
|
|
Committee's approval of including the examination in the audit plan
|
|
under Section 321.013], may: |
|
(1) examine or cause to be examined, in periodic |
|
postaudits of their expenditures and by methods the auditor |
|
considers appropriate and adequate, whether departments and |
|
agencies are in compliance with this chapter; and |
|
(2) report the findings to the governor, the |
|
comptroller, and the Legislative Audit Committee. |
|
SECTION 24. Section 654.043, Government Code, is amended to |
|
read as follows: |
|
Sec. 654.043. FREE USE OF COMPTROLLER'S DATA PROCESSING |
|
CENTER. The state auditor's office [classification officer] may |
|
use, without charge, the comptroller's data processing center to |
|
process position classification information when the center is |
|
available. |
|
SECTION 25. Sections 825.4041(f) and (g), Government Code, |
|
are amended to read as follows: |
|
(f) At the end of each school year, the retirement system |
|
shall certify to the commissioner of education [and to the state
|
|
auditor]: |
|
(1) the name of each employer that has failed to remit, |
|
within the period required by Section 825.408, all payments |
|
required under this section for the school year; and |
|
(2) the amounts of the unpaid required payments. |
|
(g) If the commissioner of education [or the state auditor] |
|
receives a certification under Subsection (f), the commissioner [or
|
|
the state auditor] shall direct the comptroller to withhold the |
|
amount certified, plus interest computed at the rate and in the |
|
manner provided by Section 825.408, from the first state money |
|
payable to the employer. The amount withheld shall be deposited to |
|
the credit of the appropriate accounts of the retirement system. |
|
Any action taken under this subsection is subject to audit by the |
|
state auditor in accordance with Chapter 321. |
|
SECTION 26. Section 1231.044(a), Government Code, is |
|
amended to read as follows: |
|
(a) In accordance with Chapter 321 [On the board's request], |
|
the state auditor may [shall] review the disposition of state |
|
security proceeds. |
|
SECTION 27. Section 2102.009, Government Code, is amended |
|
to read as follows: |
|
Sec. 2102.009. ANNUAL REPORT. The internal auditor shall |
|
prepare an annual report and submit the report before November 1 of |
|
each year to the governor, the Legislative Budget Board, the Sunset |
|
Advisory Commission, the state auditor, the state agency's |
|
governing board, and the administrator. The state auditor shall |
|
prescribe the form and content of the report[, subject to the
|
|
approval of the legislative audit committee]. |
|
SECTION 28. Section 2102.0091, Government Code, is amended |
|
by adding Subsection (d) to read as follows: |
|
(d) A report required under this section shall be posted on |
|
a state agency's Internet website not later than the 30th day after |
|
the date the report is submitted to the state agency's governing |
|
board or to the administrator of the state agency if the state |
|
agency does not have a governing board. |
|
SECTION 29. Chapter 2102, Government Code, is amended by |
|
adding Section 2102.0092 to read as follows: |
|
Sec. 2102.0092. STATE AUDITOR ACCESS TO DRAFT REPORTS. The |
|
state auditor is entitled to inspect and make copies of all drafts |
|
of an internal audit report. |
|
SECTION 30. Section 2104.0215(a), Government Code, is |
|
amended to read as follows: |
|
(a) A state agency that agrees to enter into a |
|
rehabilitation plan shall engage the services of an independent |
|
management consulting team approved by the governor and by the |
|
joint chairs [presiding officer and assistant presiding officer] of |
|
the legislative audit committee. The independent management |
|
consulting team may include the state auditor, one or more |
|
appropriate state agencies, and private consultants. |
|
SECTION 31. Section 2263.005, Government Code, is amended |
|
by amending Subsections (a), (c), and (e) and adding Subsection (f) |
|
to read as follows: |
|
(a) A financial advisor or service provider described by |
|
Section 2263.004 shall disclose in writing to the administrative |
|
head of the applicable state governmental entity [and to the state
|
|
auditor]: |
|
(1) any relationship the financial advisor or service |
|
provider has with any party to a transaction with the state |
|
governmental entity, other than a relationship necessary to the |
|
investment or funds management services that the financial advisor |
|
or service provider performs for the state governmental entity, if |
|
a reasonable person could expect the relationship to diminish the |
|
financial advisor's or service provider's independence of judgment |
|
in the performance of the person's responsibilities to the state |
|
governmental entity; and |
|
(2) all direct or indirect pecuniary interests the |
|
financial advisor or service provider has in any party to a |
|
transaction with the state governmental entity, if the transaction |
|
is connected with any financial advice or service the financial |
|
advisor or service provider provides to the state governmental |
|
entity or to a member of the governing body in connection with the |
|
management or investment of state funds. |
|
(c) A financial advisor or service provider described by |
|
Section 2263.004 shall file annually a statement with the |
|
administrative head of the applicable state governmental entity |
|
[and with the state auditor]. The statement must disclose each |
|
relationship and pecuniary interest described by Subsection (a) or, |
|
if no relationship or pecuniary interest described by that |
|
subsection existed during the disclosure period, the statement must |
|
affirmatively state that fact. |
|
(e) The financial advisor or service provider shall |
|
promptly file a new or amended statement with the administrative |
|
head of the applicable state governmental entity [and with the
|
|
state auditor] whenever there is new information to report under |
|
Subsection (a). |
|
(f) The annual statement filed with a state governmental |
|
entity under this section is subject to audit by the state auditor |
|
under Chapter 321. |
|
SECTION 32. Section 2306.074(a), Government Code, is |
|
amended to read as follows: |
|
(a) The department's books and accounts must be audited each |
|
fiscal year by a certified public accountant or, in accordance with |
|
Chapter 321 [if requested by the department and if the legislative
|
|
audit committee approves including the audit in the audit plan
|
|
under Section 321.013(c)], by the state auditor. A copy of the |
|
audit must be filed with the governor, the comptroller, and the |
|
legislature not later than the 30th day after the submission date |
|
for the annual financial report as required by the General |
|
Appropriations Act. If the state auditor is conducting the audit |
|
and it is not available by the 30th day after the submission date as |
|
required by the General Appropriations Act for annual financial |
|
reporting, it must be filed as soon as it is available. |
|
SECTION 33. Sections 2306.560(a) and (b), Government Code, |
|
are amended to read as follows: |
|
(a) The [corporation shall hire an independent certified
|
|
public accountant to audit the] corporation's books and accounts |
|
shall be audited by a certified public accountant or by the state |
|
auditor [for] each fiscal year. The corporation shall file a copy |
|
of the audit with the department and shall submit the audit report |
|
to the governor, lieutenant governor, speaker of the house of |
|
representatives, comptroller, Bond Review Board, State Auditor's |
|
Office, and Legislative Budget Board not later than the 30th day |
|
after the submission date established in the General Appropriations |
|
Act for the annual financial report. |
|
(b) The corporation is subject to audit by the state auditor |
|
in accordance with Chapter 321. |
|
SECTION 34. Section 1506.004(b), Insurance Code, is amended |
|
to read as follows: |
|
(b) The state auditor shall be reimbursed for the cost of an |
|
audit performed under Subsection (a) [report the cost of each audit
|
|
conducted under this section to the board and the comptroller. The
|
|
board shall remit that amount to the comptroller]. |
|
SECTION 35. Section 2210.054, Insurance Code, is amended by |
|
amending Subsection (a) and adding Subsection (c) to read as |
|
follows: |
|
(a) The association shall file annually with the department |
|
and the state auditor's office a statement covering periods |
|
designated by the department that summarizes the transactions, |
|
conditions, operations, and affairs of the association during the |
|
preceding year. |
|
(c) The association is subject to audit by the state |
|
auditor. The association shall pay the costs incurred by the state |
|
auditor for performing an audit of the association under this |
|
section. The association shall pay the costs promptly after |
|
receipt of a statement from the state auditor's office regarding |
|
the incurred costs. |
|
SECTION 36. Section 391.0095(e), Local Government Code, is |
|
amended to read as follows: |
|
(e) A commission shall send to the governor, the state |
|
auditor, the comptroller, and the Legislative Budget Board a copy |
|
of each report and audit required under this section or under |
|
Section 391.009. The state auditor may review each audit and |
|
report[, subject to a risk assessment performed by the state
|
|
auditor and to the legislative audit committee's approval of
|
|
including the review in the audit plan under Section 321.013,
|
|
Government Code]. If the state auditor reviews the audit or report, |
|
the state auditor must be given access to working papers and other |
|
supporting documentation that the state auditor determines is |
|
necessary to perform the review, in accordance with Chapter 321, |
|
Government Code. If the state auditor finds significant issues |
|
involving the administration or operation of a commission or its |
|
programs, the state auditor shall report its findings and related |
|
recommendations to the legislative audit committee, the governor, |
|
and the commission. The governor and the legislative audit |
|
committee may direct the commission to prepare a corrective action |
|
plan or other response to the state auditor's findings or |
|
recommendations. [The legislative audit committee may direct the
|
|
state auditor to perform any additional audit or investigative work
|
|
that the committee determines is necessary.] |
|
SECTION 37. Section 366.183, Transportation Code, is |
|
amended to read as follows: |
|
Sec. 366.183. AUDIT. (a) An authority shall have a |
|
certified public accountant audit the authority's books and |
|
accounts at least annually. The cost of the audit may be treated as |
|
part of the cost of construction or operation of a turnpike project. |
|
(b) An authority's records are subject to audit by the state |
|
auditor. If an authority is audited by the state auditor, the |
|
authority shall reimburse the state auditor for the expense of the |
|
audit. |
|
SECTION 38. Subchapter B, Chapter 371, Transportation Code, |
|
is amended by adding Section 371.053 to read as follows: |
|
Sec. 371.053. AUDIT AUTHORITY. A comprehensive development |
|
agreement entered into by a toll project entity is subject to audit |
|
by the state auditor. If a comprehensive development agreement is |
|
audited by the state auditor, the toll project entity that entered |
|
into the agreement shall reimburse the state auditor for the |
|
expense of the audit. |
|
SECTION 39. Sections 321.014(g) and 654.042, Government |
|
Code, are repealed. |
|
SECTION 40. 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, 2011. |