HBA-ATS S.B. 770 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 770
By: Shapiro
State Affairs
4/27/1999
Engrossed



BACKGROUND AND PURPOSE 

Passed by the Texas Legislature in May 1989, the Internal Audit Act
requires that certain agencies have an independent internal audit function.
In addition, the Act sets forth guidelines for the internal audit and
establishes qualifications, responsibilities, and standards for an internal
auditor. Maintaining the independence of the internal audit is important to
its function.  S.B. 770 includes the provision that the external peer
review in which the internal auditor is required to participate is in
accordance with standards described by Section 2102.011, Government Code.
In addition, this bill deletes a state agency's designee from the list of
entities required to appoint an internal auditor, and requires the
governing body of a state agency or the administrator of a state agency
without a governing body  to review the agency's staffing and budget of its
internal auditing program to determine whether the agency maintains
adequate resources to address identified risks in the agency's annual risk
assessment. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2102.006, Government Code, by amending
Subsection (a) and adding Subsection (d), as follows: 

(a) Deletes a state agency's designee from the list of entities required to
appoint an internal auditor. 

(d) Requires the governing body of a state agency or the administrator of a
state agency without a governing body  to review the agency's staffing and
budget of its internal auditing program to determine whether the agency
maintains adequate resources to address identified risks in the agency's
annual risk assessment. 

SECTION 2.  Amends Section 2102.007(a), Government Code, to include the
provision that the external peer review in which the internal auditor is
required to participate is in accordance with standards described by
Section 2102.011, Government Code (Internal Audit Standards). 

SECTION 3.  Amends Section 2102.008, Government Code, to make a conforming
change. 

SECTION 4.  Repealer:  Section 2102.009 (Annual Report), Government Code.

SECTION 5.  Effective date:  September 1, 1999.

SECTION 6.  Emergency clause.