HBA-BSM H.B. 609 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 609 By: Hochberg State Affairs 7/19/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, a state agency that had an annual operating budget that exceeded $10 million, that had a staff of more than 300 employees, or that received and processed cash items in excess of $10 million was required to annually appoint an internal auditor. This excluded smaller agencies that may have been able to improve performance by identifying problems through an internal audit. House Bill 609 extends the internal audit requirement to all state agencies that receive an appropriation. 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. ANALYSIS House Bill 609 amends the Government Code to make the Texas Internal Auditing Act applicable to each state agency that receives an appropriation. The bill requires all state agencies that become subject to the Texas Internal Auditing Act to appoint an internal auditor by January 1, 2002, and to begin submitting an annual report by October 31, 2002. The bill requires a state agency to file with the Sunset Advisory Commission a copy of each report submitted by the agency's internal auditor to the agency's governing board or administrator. EFFECTIVE DATE September 1, 2001.