HBA-SEP, CBW C.S.H.B. 609 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 609 By: Hochberg State Affairs 4/20/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Current law requires a state agency that has an annual operating budget that exceeds $10 million, that has a staff of more than 300 employees, or that receives and processes cash items in excess of $10 million annually to appoint an internal auditor. This excludes smaller agencies that may be able to improve performance by identifying problems through an internal audit. C.S.H.B. 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 C.S.H.B. 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. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 609 differs from the original bill by requiring a state agency to file with the Sunset Advisory Commission a copy of each report submitted by the agency's internal auditor to the state agency's governing board or administrator. The substitute differs from the original by providing that the audit provision applies to state agencies that receive an appropriation, rather than to all state agencies.